WallStSmart

Chipotle Mexican Grill Inc (CMG)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 445% more annual revenue ($65.01B vs $11.93B). MRK leads profitability with a 28.1% profit margin vs 12.9%. CMG appears more attractively valued with a PEG of 1.73. MRK earns a higher WallStSmart Score of 59/100 (C).

CMG

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 2.47

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMGSignificantly Overvalued (-147.3%)

Margin of Safety

-147.3%

Fair Value

$15.05

Current Price

$32.50

$17.45 premium

UndervaluedFair: $15.05Overvalued
MRKSignificantly Overvalued (-141.2%)

Margin of Safety

-141.2%

Fair Value

$49.50

Current Price

$119.37

$69.87 premium

UndervaluedFair: $49.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
47.4%10/10

Every $100 of equity generates 47 in profit

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$287.71B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

CMG4 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMG

The strongest argument for CMG centers on Return on Equity.

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 : CMG

The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 3.48 is elevated, increasing financial risk.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

CMG carries more volatility with a beta of 1.02 — 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.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (59/100 vs 56/100), backed by strong 28.1% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chipotle Mexican Grill Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.

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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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