Alcon AG (ALC)vsMerck & Company Inc (MRK)
ALC
Alcon AG
$75.26
+1.37%
HEALTHCARE · Cap: $37.11B
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 525% more annual revenue ($65.01B vs $10.40B). MRK leads profitability with a 28.1% profit margin vs 9.4%. ALC appears more attractively valued with a PEG of 1.70. MRK earns a higher WallStSmart Score of 59/100 (C).
ALC
Hold49
out of 100
Grade: D+
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-489.8%
Fair Value
$13.46
Current Price
$75.26
$61.80 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
Conservative balance sheet, low leverage
Reasonable price relative to book value
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
Premium valuation, high expectations priced in
ROE of 4.5% — below average capital efficiency
Earnings declined 22.2%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ALC
The strongest argument for ALC centers on Debt/Equity, Price/Book.
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 : ALC
The primary concerns for ALC are PEG Ratio, P/E Ratio, Return on Equity.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ALC carries more volatility with a beta of 0.70 — expect wider price swings.
ALC is growing revenue faster at 8.6% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (59/100 vs 49/100), backed by strong 28.1% margins. 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.
Alcon AG
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Alcon, Inc., an eye care company, researches, develops, manufactures, distributes and sells eye care products for eye care professionals and their patients around the world. The company is headquartered in Geneva, Switzerland.
Visit Website →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 →Compare with Other MEDICAL INSTRUMENTS & SUPPLIES Stocks
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