AstraZeneca PLC (AZN)vsMerck & Company Inc (MRK)
AZN
AstraZeneca PLC
$161.85
+0.64%
HEALTHCARE · Cap: $252.33B
MRK
Merck & Company Inc
$144.94
+0.78%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 8% more annual revenue ($66.57B vs $61.37B). AZN leads profitability with a 17.0% profit margin vs 4.8%. AZN appears more attractively valued with a PEG of 1.28. AZN earns a higher WallStSmart Score of 60/100 (C+).
AZN
Buy60
out of 100
Grade: C+
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+18.4%
Fair Value
$196.10
Current Price
$161.85
$34.25 discount
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$144.94
$62.10 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 21 in profit
Strong operational efficiency at 23.5%
Generating 2.1B in free cash flow
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
2.5% earnings growth
Distress zone — elevated risk
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AZN
The strongest argument for AZN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 23.5%. PEG of 1.28 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : AZN
The primary concerns for AZN are EPS Growth, Altman Z-Score.
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
AZN profiles as a mature stock while MRK is a value play — different risk/reward profiles.
MRK carries more volatility with a beta of 0.23 — expect wider price swings.
AZN is growing revenue faster at 6.4% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
AZN scores higher overall (60/100 vs 36/100), backed by strong 17.0% 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.
AstraZeneca PLC
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
AstraZeneca PLC discovers, develops, manufactures and markets prescription drugs in the areas of oncology, cardiovascular, renal and metabolism, respiratory, infections, neuroscience and gastroenterology worldwide. The company is headquartered in Cambridge, the United Kingdom.
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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