Merck & Company Inc (MRK)vsTransMedics Group Inc (TMDX)
MRK
Merck & Company Inc
$148.78
+0.54%
HEALTHCARE · Cap: $365.34B
TMDX
TransMedics Group Inc
$85.29
+1.66%
HEALTHCARE · Cap: $3.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 9858% more annual revenue ($66.57B vs $668.47M). TMDX leads profitability with a 22.7% profit margin vs 4.8%. TMDX appears more attractively valued with a PEG of 0.74. TMDX earns a higher WallStSmart Score of 62/100 (C+).
MRK
Hold36
out of 100
Grade: F
TMDX
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-78.2%
Fair Value
$83.04
Current Price
$148.78
$65.74 premium
Margin of Safety
+53.7%
Fair Value
$287.78
Current Price
$85.29
$202.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Every $100 of equity generates 35 in profit
Keeps 23 of every $100 in revenue as profit
Growing faster than its price suggests
Revenue surging 20.7% year-over-year
Areas to Watch
Trading at 8.8x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Distress zone — elevated risk
Elevated debt levels
Earnings declined 55.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : TMDX
The strongest argument for TMDX centers on Return on Equity, Profit Margin, PEG Ratio. Profitability is solid with margins at 22.7% and operating margin at 12.5%. Revenue growth of 20.7% demonstrates continued momentum.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 120.4x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : TMDX
The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.67 is elevated, increasing financial risk.
Key Dynamics to Monitor
MRK profiles as a value stock while TMDX is a growth play — different risk/reward profiles.
TMDX carries more volatility with a beta of 1.88 — expect wider price swings.
TMDX is growing revenue faster at 20.7% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
TMDX scores higher overall (62/100 vs 36/100), backed by strong 22.7% margins and 20.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →TransMedics Group Inc
HEALTHCARE · MEDICAL DEVICES · USA
TransMedics Group, Inc., a commercial-stage medical technology company, is dedicated to transforming organ transplant therapy for patients with end-stage organ failure in the United States and internationally. The company is headquartered in Andover, Massachusetts.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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