WallStSmart

Merck & Company Inc (MRK)vsVanda Pharmaceuticals Inc (VNDA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 30099% more annual revenue ($65.77B vs $217.78M). MRK leads profitability with a 13.6% profit margin vs -110.0%. VNDA appears more attractively valued with a PEG of 2.23. MRK earns a higher WallStSmart Score of 50/100 (D+).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30

VNDA

Hold

37

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 6.3Quality: 6.0
Piotroski: 2/9Altman Z: 0.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued
VNDAUndervalued (+83.7%)

Margin of Safety

+83.7%

Fair Value

$37.46

Current Price

$6.03

$31.43 discount

UndervaluedFair: $37.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

VNDA2 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

VNDA4 concerns · Avg: 3.5/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Market CapQuality
$366.83M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bull Case : VNDA

The strongest argument for VNDA centers on Price/Book, Debt/Equity.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Bear Case : VNDA

The primary concerns for VNDA are PEG Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

MRK profiles as a value stock while VNDA is a turnaround play — different risk/reward profiles.

VNDA carries more volatility with a beta of 0.60 — expect wider price swings.

MRK is growing revenue faster at 4.9% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

MRK scores higher overall (50/100 vs 37/100). VNDA offers better value entry with a 83.7% margin of safety. Both earn "Hold" 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.

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Vanda Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs. The company is headquartered in Washington, the District of Columbia.

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