WallStSmart

AtriCure Inc (ATRC)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 11587% more annual revenue ($66.57B vs $569.62M). MRK leads profitability with a 4.8% profit margin vs 1.9%. MRK appears more attractively valued with a PEG of 2.64. MRK earns a higher WallStSmart Score of 36/100 (F).

ATRC

Hold

35

out of 100

Grade: F

Growth: 6.0Profit: 4.0Value: 4.7Quality: 8.5
Piotroski: 5/9Altman Z: 2.17

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATRCUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$74.75

Current Price

$54.54

$20.21 discount

UndervaluedFair: $74.75Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATRC1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

ATRC4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
10.002/10

Expensive relative to growth rate

P/E RatioValuation
255.9x2/10

Premium valuation, high expectations priced in

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ATRC

The strongest argument for ATRC centers on Debt/Equity. Revenue growth of 12.8% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : ATRC

The primary concerns for ATRC are EPS Growth, Profit Margin, PEG Ratio. A P/E of 255.9x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

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

ATRC carries more volatility with a beta of 1.26 — expect wider price swings.

ATRC is growing revenue faster at 12.8% — 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

MRK scores higher overall (36/100 vs 35/100). ATRC offers better value entry with a 56.0% margin of safety. Both earn "Hold" 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.

AtriCure Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

AtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems to medical centers in the United States, Europe, Asia, and internationally. The company is headquartered in Mason, Ohio.

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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