Ambev SA ADR (ABEV)vsMerck & Company Inc (MRK)
ABEV
Ambev SA ADR
$2.85
+2.52%
CONSUMER DEFENSIVE · Cap: $43.41B
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Ambev SA ADR generates 36% more annual revenue ($88.24B vs $65.01B). MRK leads profitability with a 28.1% profit margin vs 17.6%. ABEV appears more attractively valued with a PEG of 2.02. MRK earns a higher WallStSmart Score of 59/100 (C).
ABEV
Buy55
out of 100
Grade: C
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-136.4%
Fair Value
$1.29
Current Price
$2.85
$1.56 premium
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 11.6B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 28.2%
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
Areas to Watch
Expensive relative to growth rate
Revenue declined 8.2%
Earnings declined 10.1%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ABEV
The strongest argument for ABEV centers on Free Cash Flow, P/E Ratio, Price/Book. Profitability is solid with margins at 17.6% and operating margin at 28.2%.
Bull 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%.
Bear Case : ABEV
The primary concerns for ABEV are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ABEV profiles as a declining stock while MRK is a value play — different risk/reward profiles.
ABEV carries more volatility with a beta of 0.28 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 55/100), 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.
Ambev SA ADR
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.
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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