Avanos Medical Inc (AVNS)vsMerck & Company Inc (MRK)
AVNS
Avanos Medical Inc
$24.64
-0.06%
HEALTHCARE · Cap: $1.15B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 9171% more annual revenue ($65.01B vs $701.20M). MRK leads profitability with a 28.1% profit margin vs -10.4%. MRK earns a higher WallStSmart Score of 59/100 (C).
AVNS
Avoid34
out of 100
Grade: F
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.5%
Fair Value
$64.45
Current Price
$24.64
$39.81 discount
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
Reasonable price relative to book value
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
0.7% revenue growth
Smaller company, higher risk/reward
Operating margin of 2.0%
ROE of -9.1% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : AVNS
The strongest argument for AVNS centers on Price/Book.
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 : AVNS
The primary concerns for AVNS are Revenue Growth, Market Cap, Operating Margin.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
AVNS profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
AVNS carries more volatility with a beta of 1.05 — expect wider price swings.
MRK is growing revenue faster at 5.0% — 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 34/100), backed by strong 28.1% margins. AVNS offers better value entry with a 76.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Avanos Medical Inc
HEALTHCARE · MEDICAL DEVICES · USA
Avanos Medical, Inc. is a medical technology company focused on providing medical device solutions to improve the quality of life for patients in North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America. The company is headquartered in Alpharetta, Georgia.
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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