Arrowhead Pharmaceuticals Inc (ARWR)vsMerck & Company Inc (MRK)
ARWR
Arrowhead Pharmaceuticals Inc
$73.48
+4.18%
HEALTHCARE · Cap: $9.88B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 5859% more annual revenue ($65.01B vs $1.09B). MRK leads profitability with a 28.1% profit margin vs 18.5%. MRK trades at a lower P/E of 15.2x. MRK earns a higher WallStSmart Score of 59/100 (C).
ARWR
Buy56
out of 100
Grade: C
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARWR.
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 76 in profit
Revenue surging 10461.0% year-over-year
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
Trading at 17.7x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARWR
The strongest argument for ARWR centers on Return on Equity, Revenue Growth. Profitability is solid with margins at 18.5% and operating margin at 15.5%. Revenue growth of 10461.0% 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 : ARWR
The primary concerns for ARWR are Price/Book, P/E Ratio, Altman Z-Score. A P/E of 44.1x leaves little room for execution misses.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ARWR profiles as a growth stock while MRK is a value play — different risk/reward profiles.
ARWR carries more volatility with a beta of 1.27 — expect wider price swings.
ARWR is growing revenue faster at 10461.0% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 56/100), backed by strong 28.1% margins. 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.
Arrowhead Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, 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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