Merck & Company Inc (MRK)vsXOMA Royalty Corporation (XOMA)
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
XOMA
XOMA Royalty Corporation
$40.17
0.00%
HEALTHCARE · Cap: $792.01M
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 137000% more annual revenue ($66.57B vs $48.55M). XOMA leads profitability with a 69.6% profit margin vs 4.8%. XOMA trades at a lower P/E of 28.7x. XOMA earns a higher WallStSmart Score of 46/100 (D+).
MRK
Hold36
out of 100
Grade: F
XOMA
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Margin of Safety
-65.9%
Fair Value
$14.03
Current Price
$40.17
$26.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Keeps 70 of every $100 in revenue as profit
Earnings expanding 207.9% YoY
Every $100 of equity generates 28 in profit
Areas to Watch
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Moderate valuation
Smaller company, higher risk/reward
Elevated debt levels
Revenue declined 22.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : XOMA
The strongest argument for XOMA centers on Profit Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 69.6% and operating margin at -3.9%.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
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 declining play — different risk/reward profiles.
XOMA carries more volatility with a beta of 0.86 — expect wider price swings.
MRK is growing revenue faster at 5.1% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
XOMA scores higher overall (46/100 vs 36/100), backed by strong 69.6% margins. 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.
Visit Website →XOMA Royalty Corporation
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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