WallStSmart

Collegium Pharmaceutical Inc (COLL)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 8326% more annual revenue ($65.77B vs $780.57M). MRK leads profitability with a 13.6% profit margin vs 8.1%. COLL trades at a lower P/E of 19.8x. COLL earns a higher WallStSmart Score of 65/100 (B-).

COLL

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 7.0Quality: 5.0

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COLLUndervalued (+89.2%)

Margin of Safety

+89.2%

Fair Value

$416.48

Current Price

$37.80

$378.68 discount

UndervaluedFair: $416.48Overvalued
MRKOvervalued (-14.9%)

Margin of Safety

-14.9%

Fair Value

$97.76

Current Price

$111.38

$13.62 premium

UndervaluedFair: $97.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COLL3 strengths · Avg: 9.0/10
Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

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

COLL1 concerns · Avg: 3.0/10
Market CapQuality
$1.11B3/10

Smaller company, higher risk/reward

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.282/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : COLL

The strongest argument for COLL centers on Operating Margin, Return on Equity, EPS Growth. Revenue growth of 12.9% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : COLL

The primary concerns for COLL are Market Cap.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

Key Dynamics to Monitor

COLL carries more volatility with a beta of 0.76 — expect wider price swings.

COLL is growing revenue faster at 12.9% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

COLL scores higher overall (65/100 vs 50/100) and 12.9% 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.

Collegium Pharmaceutical Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, develops and markets pain management medications. The company is headquartered in Stoughton, Massachusetts.

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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