WallStSmart

Bausch Health Companies Inc (BHC)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 525% more annual revenue ($65.77B vs $10.53B). MRK leads profitability with a 13.6% profit margin vs -11.5%. BHC appears more attractively valued with a PEG of 0.01. BHC earns a higher WallStSmart Score of 69/100 (B-).

BHC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 6.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.26

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BHC.

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHC5 strengths · Avg: 9.6/10
PEG RatioValuation
0.0110/10

Growing faster than its price suggests

Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
1368.0%10/10

Earnings expanding 1368.0% YoY

Debt/EquityHealth
-10.1010/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.6%8/10

Strong operational efficiency at 20.6%

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

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

BHC3 concerns · Avg: 2.0/10
Market CapQuality
$1.89B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.262/10

Distress zone — elevated risk

Profit MarginProfitability
-11.5%1/10

Currently unprofitable

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

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 : BHC

The strongest argument for BHC centers on PEG Ratio, Return on Equity, EPS Growth. Revenue growth of 11.7% demonstrates continued momentum. PEG of 0.01 suggests the stock is reasonably priced for its growth.

Bull Case : MRK

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

Bear Case : BHC

The primary concerns for BHC are Market Cap, Altman Z-Score, Profit Margin.

Bear Case : MRK

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

Key Dynamics to Monitor

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

BHC carries more volatility with a beta of 0.41 — expect wider price swings.

BHC is growing revenue faster at 11.7% — sustainability is the question.

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

Bottom Line

BHC scores higher overall (69/100 vs 50/100) and 11.7% revenue growth. Both earn "Strong 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.

Bausch Health Companies Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Bausch Health Companies Inc. develops, manufactures and markets a range of pharmaceutical, medical device and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology and dermatology. The company is headquartered in Laval, Canada.

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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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