WallStSmart

Baxter International Inc (BAX)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 473% more annual revenue ($65.77B vs $11.47B). MRK leads profitability with a 13.6% profit margin vs -9.3%. MRK appears more attractively valued with a PEG of 12.06. BAX earns a higher WallStSmart Score of 52/100 (C-).

BAX

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 3.5Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.98

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BAXUndervalued (+51.5%)

Margin of Safety

+51.5%

Fair Value

$45.91

Current Price

$27.78

$18.13 discount

UndervaluedFair: $45.91Overvalued
MRKSignificantly Overvalued (-58.0%)

Margin of Safety

-58.0%

Fair Value

$81.23

Current Price

$130.92

$49.69 premium

UndervaluedFair: $81.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAX2 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
36.8%8/10

Earnings expanding 36.8% YoY

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$316.14B10/10

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

BAX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Debt/EquityHealth
1.603/10

Elevated debt levels

PEG RatioValuation
36.682/10

Expensive relative to growth rate

Return on EquityProfitability
-18.2%2/10

ROE of -18.2% — below average capital efficiency

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : BAX

The strongest argument for BAX centers on Price/Book, EPS Growth.

Bull Case : MRK

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

Bear Case : BAX

The primary concerns for BAX are Altman Z-Score, Debt/Equity, PEG Ratio. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

BAX profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.

BAX carries more volatility with a beta of 0.61 — expect wider price swings.

BAX is growing revenue faster at 5.3% — sustainability is the question.

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

Bottom Line

BAX scores higher overall (52/100 vs 50/100). 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.

Baxter International Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Baxter International Inc. is an American multinational health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.

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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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