Merck & Company Inc (MRK)vsUnited Therapeutics Corporation (UTHR)
MRK
Merck & Company Inc
$146.72
-0.14%
HEALTHCARE · Cap: $368.89B
UTHR
United Therapeutics Corporation
$562.02
-0.65%
HEALTHCARE · Cap: $25.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 2036% more annual revenue ($67.38B vs $3.15B). UTHR leads profitability with a 41.6% profit margin vs 3.6%. UTHR appears more attractively valued with a PEG of 2.22. UTHR earns a higher WallStSmart Score of 61/100 (C+).
MRK
Hold44
out of 100
Grade: D
UTHR
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$146.72
$62.06 premium
Margin of Safety
+0.7%
Fair Value
$479.26
Current Price
$562.02
$82.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Keeps 42 of every $100 in revenue as profit
Strong operational efficiency at 42.2%
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Areas to Watch
Trading at 8.6x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Expensive relative to growth rate
Revenue declined 1.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : UTHR
The strongest argument for UTHR centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 41.6% and operating margin at 42.2%.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : UTHR
The primary concerns for UTHR are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
MRK profiles as a value stock while UTHR is a declining play — different risk/reward profiles.
UTHR carries more volatility with a beta of 0.49 — expect wider price swings.
MRK is growing revenue faster at 4.7% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
UTHR scores higher overall (61/100 vs 44/100), backed by strong 41.6% margins. 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 →United Therapeutics Corporation
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
United Therapeutics Corporation, a biotechnology company, is dedicated to the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company is headquartered in Silver Spring, Maryland.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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