WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 513% more annual revenue ($66.57B vs $10.85B). MRK leads profitability with a 4.8% profit margin vs -10.1%. BHC appears more attractively valued with a PEG of 0.01. BHC earns a higher WallStSmart Score of 70/100 (B).

BHC

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 6.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.22

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

Intrinsic value data unavailable for BHC.

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued

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
70.4%10/10

Earnings expanding 70.4% YoY

Debt/EquityHealth
-11.7310/10

Conservative balance sheet, low leverage

Operating MarginProfitability
27.2%8/10

Strong operational efficiency at 27.2%

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

BHC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.222/10

Distress zone — elevated risk

Profit MarginProfitability
-10.1%1/10

Currently unprofitable

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 : BHC

The strongest argument for BHC centers on PEG Ratio, Return on Equity, EPS Growth. Revenue growth of 12.7% 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, Free Cash Flow.

Bear Case : BHC

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

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

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

BHC carries more volatility with a beta of 0.37 — expect wider price swings.

BHC is growing revenue faster at 12.7% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

BHC scores higher overall (70/100 vs 36/100) and 12.7% 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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