WallStSmart

Merck & Company Inc (MRK)vscbdMD Inc (YCBD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 328995% more annual revenue ($65.77B vs $19.98M). MRK leads profitability with a 13.6% profit margin vs -13.3%. YCBD trades at a lower P/E of 0.3x. 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

YCBD

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 7.0Quality: 7.0
Piotroski: 6/9Altman Z: -21.17
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
YCBDUndervalued (+10.3%)

Margin of Safety

+10.3%

Fair Value

$0.84

Current Price

$0.72

$0.12 discount

UndervaluedFair: $0.84Overvalued

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

YCBD4 strengths · Avg: 9.5/10
P/E RatioValuation
0.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
18.8%8/10

18.8% revenue growth

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

YCBD4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$7.51M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-28.6%2/10

ROE of -28.6% — below average capital efficiency

Free Cash FlowQuality
$-728,2502/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : YCBD

The strongest argument for YCBD centers on P/E Ratio, Price/Book, Debt/Equity. Revenue growth of 18.8% demonstrates continued momentum.

Bear Case : MRK

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

Bear Case : YCBD

The primary concerns for YCBD are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

MRK profiles as a value stock while YCBD is a growth play — different risk/reward profiles.

YCBD carries more volatility with a beta of 2.17 — expect wider price swings.

YCBD is growing revenue faster at 18.8% — 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). 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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cbdMD Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

cbdMD, Inc. produces and distributes various cannabidiol (CBD) products. The company is headquartered in Charlotte, North Carolina.

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