Merck & Company Inc (MRK)vsVarex Imaging Corp (VREX)
MRK
Merck & Company Inc
$146.99
-0.16%
HEALTHCARE · Cap: $368.89B
VREX
Varex Imaging Corp
$18.27
-0.65%
HEALTHCARE · Cap: $783.03M
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 7689% more annual revenue ($67.38B vs $865.00M). MRK leads profitability with a 3.6% profit margin vs 2.6%. MRK appears more attractively valued with a PEG of 2.82. VREX earns a higher WallStSmart Score of 55/100 (C-).
MRK
Hold44
out of 100
Grade: D
VREX
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-72.9%
Fair Value
$84.87
Current Price
$146.99
$62.12 premium
Margin of Safety
+13.6%
Fair Value
$15.76
Current Price
$18.27
$2.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 5.5B in free cash flow
Earnings expanding 453.4% YoY
Reasonable price relative to book value
Areas to Watch
Trading at 8.7x book value
4.7% revenue growth
ROE of 5.5% — below average capital efficiency
3.6% margin — thin
Premium valuation, high expectations priced in
3.7% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : VREX
The strongest argument for VREX centers on EPS Growth, Price/Book.
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 : VREX
The primary concerns for VREX are P/E Ratio, Revenue Growth, Altman Z-Score. Thin 2.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
VREX carries more volatility with a beta of 1.03 — expect wider price swings.
MRK is growing revenue faster at 4.7% — sustainability is the question.
MRK generates stronger free cash flow (5.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
VREX scores higher overall (55/100 vs 44/100). 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 →Varex Imaging Corp
HEALTHCARE · MEDICAL DEVICES · USA
Varex Imaging Corporation designs and manufactures X-ray imaging components. The company is headquartered in Salt Lake City, Utah.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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