WallStSmart

Amphastar P (AMPH)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 9036% more annual revenue ($65.77B vs $719.89M). MRK leads profitability with a 13.6% profit margin vs 13.6%. AMPH appears more attractively valued with a PEG of 2.77. MRK earns a higher WallStSmart Score of 53/100 (C-).

AMPH

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.0

MRK

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 2.7Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMPHUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$52.50

Current Price

$23.90

$28.60 discount

UndervaluedFair: $52.50Overvalued
MRKSignificantly Overvalued (-15.7%)

Margin of Safety

-15.7%

Fair Value

$97.76

Current Price

$113.56

$15.80 premium

UndervaluedFair: $97.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMPH2 strengths · Avg: 10.0/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

MRK4 strengths · Avg: 9.5/10
Market CapQuality
$277.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
38.1%10/10

Strong operational efficiency at 38.1%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

AMPH4 concerns · Avg: 2.3/10
Market CapQuality
$974.42M3/10

Smaller company, higher risk/reward

PEG RatioValuation
2.772/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.8%2/10

Revenue declined 1.8%

EPS GrowthGrowth
-31.0%2/10

Earnings declined 31.0%

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.432/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AMPH

The strongest argument for AMPH centers on P/E Ratio, Price/Book.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin.

Bear Case : AMPH

The primary concerns for AMPH are Market Cap, PEG Ratio, Revenue Growth.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

Key Dynamics to Monitor

AMPH profiles as a declining stock while MRK is a value play — different risk/reward profiles.

AMPH carries more volatility with a beta of 0.97 — expect wider price swings.

MRK is growing revenue faster at 4.9% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

MRK scores higher overall (53/100 vs 52/100). AMPH offers better value entry with a 45.5% margin of safety. 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.

Amphastar P

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Amphastar Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. The company is headquartered in Rancho Cucamonga, 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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