Align Technology Inc (ALGN)vsMerck & Company Inc (MRK)
ALGN
Align Technology Inc
$153.29
+4.36%
HEALTHCARE · Cap: $10.43B
MRK
Merck & Company Inc
$150.91
+0.94%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1508% more annual revenue ($66.57B vs $4.14B). ALGN leads profitability with a 10.0% profit margin vs 4.8%. ALGN appears more attractively valued with a PEG of 0.62. ALGN earns a higher WallStSmart Score of 56/100 (C).
ALGN
Buy56
out of 100
Grade: C
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$293.97
Current Price
$153.29
$140.68 discount
Margin of Safety
-77.2%
Fair Value
$83.04
Current Price
$150.91
$67.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Moderate valuation
4.3% revenue growth
Earnings declined 12.1%
Trading at 8.9x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGN
The strongest argument for ALGN centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.62 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ALGN
The primary concerns for ALGN are P/E Ratio, Revenue Growth, EPS Growth.
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.
Key Dynamics to Monitor
ALGN carries more volatility with a beta of 1.64 — 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.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ALGN scores higher overall (56/100 vs 36/100). 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.
Align Technology Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Align Technology is a manufacturer of 3D digital scanners and the Invisalign clear aligners used in orthodontics. It is headquartered in San Jose, California.
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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