WallStSmart

Air Products and Chemicals Inc (APD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 428% more annual revenue ($65.77B vs $12.46B). APD leads profitability with a 16.9% profit margin vs 13.6%. APD appears more attractively valued with a PEG of 2.46. APD earns a higher WallStSmart Score of 57/100 (C).

APD

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 1/9Altman Z: 1.36

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APDSignificantly Overvalued (-77.3%)

Margin of Safety

-77.3%

Fair Value

$166.40

Current Price

$295.41

$129.01 premium

UndervaluedFair: $166.40Overvalued
MRKOvervalued (-14.9%)

Margin of Safety

-14.9%

Fair Value

$97.76

Current Price

$111.38

$13.62 premium

UndervaluedFair: $97.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APD2 strengths · Avg: 8.5/10
Market CapQuality
$65.78B9/10

Large-cap with strong market position

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

APD4 concerns · Avg: 3.5/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

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
5.282/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : APD

The strongest argument for APD centers on Market Cap, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 23.6%.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bear Case : APD

The primary concerns for APD are PEG Ratio, P/E Ratio, Debt/Equity.

Bear Case : MRK

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

Key Dynamics to Monitor

APD profiles as a mature stock while MRK is a value play — different risk/reward profiles.

APD carries more volatility with a beta of 0.78 — expect wider price swings.

APD is growing revenue faster at 8.8% — sustainability is the question.

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

Bottom Line

APD scores higher overall (57/100 vs 50/100), backed by strong 16.9% 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.

Air Products and Chemicals Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Air Products and Chemicals, Inc. is an American international corporation whose principal business is selling gases and chemicals for industrial uses. Air Products' headquarters is in Allentown, Pennsylvania.

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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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