WallStSmart

Amneal Pharmaceuticals, Inc. Class A Common Stock (AMRX)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 2054% more annual revenue ($65.01B vs $3.02B). MRK leads profitability with a 28.1% profit margin vs 2.4%. MRK trades at a lower P/E of 15.2x. MRK earns a higher WallStSmart Score of 59/100 (C).

AMRX

Hold

44

out of 100

Grade: D

Growth: 8.0Profit: 4.5Value: 5.7Quality: 5.8
Piotroski: 5/9Altman Z: 1.13

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMRXUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$34.70

Current Price

$12.80

$21.90 discount

UndervaluedFair: $34.70Overvalued
MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMRX1 strengths · Avg: 10.0/10
EPS GrowthGrowth
261.0%10/10

Earnings expanding 261.0% YoY

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

AMRX4 concerns · Avg: 2.3/10
Profit MarginProfitability
2.4%3/10

2.4% margin — thin

P/E RatioValuation
58.2x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-881.0%2/10

ROE of -881.0% — below average capital efficiency

Altman Z-ScoreHealth
1.132/10

Distress zone — elevated risk

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AMRX

The strongest argument for AMRX centers on EPS Growth. Revenue growth of 11.5% demonstrates continued momentum.

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 : AMRX

The primary concerns for AMRX are Profit Margin, P/E Ratio, Return on Equity. A P/E of 58.2x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

AMRX carries more volatility with a beta of 1.32 — expect wider price swings.

AMRX is growing revenue faster at 11.5% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (59/100 vs 44/100), backed by strong 28.1% margins. AMRX offers better value entry with a 57.6% margin of safety. 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.

Amneal Pharmaceuticals, Inc. Class A Common Stock

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Amneal Pharmaceuticals, Inc. develops, licenses, manufactures, markets and distributes generic and specialty pharmaceutical products for various dosage forms and therapeutic areas. The company is headquartered in Bridgewater, New Jersey.

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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