Merck & Company Inc (MRK)vsXOMA Corp (XOMA)
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
XOMA
XOMA Corp
$40.94
-0.12%
HEALTHCARE · Cap: $497.18M
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 124564% more annual revenue ($65.01B vs $52.15M). XOMA leads profitability with a 60.8% profit margin vs 28.1%. MRK trades at a lower P/E of 15.2x. MRK earns a higher WallStSmart Score of 59/100 (C).
MRK
Buy59
out of 100
Grade: C
XOMA
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Margin of Safety
+2.2%
Fair Value
$23.79
Current Price
$40.94
$17.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Every $100 of equity generates 34 in profit
Keeps 61 of every $100 in revenue as profit
Revenue surging 57.9% year-over-year
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Moderate valuation
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 47.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bull Case : XOMA
The strongest argument for XOMA centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 60.8% and operating margin at 15.9%. Revenue growth of 57.9% demonstrates continued momentum.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : XOMA
The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.
Key Dynamics to Monitor
MRK profiles as a value stock while XOMA is a growth play — different risk/reward profiles.
XOMA carries more volatility with a beta of 0.68 — expect wider price swings.
XOMA is growing revenue faster at 57.9% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 52/100), backed by strong 28.1% margins. Both earn "Buy" and "Buy" 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 →XOMA Corp
HEALTHCARE · BIOTECHNOLOGY · USA
XOMA Corporation, a biotech royalty aggregator, discovers and develops therapeutic candidates in the United States, Europe, and Asia Pacific. The company is headquartered in Emeryville, California.
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