Elanco Animal Health (ELAN)vsMerck & Company Inc (MRK)
ELAN
Elanco Animal Health
$21.80
-1.58%
HEALTHCARE · Cap: $10.89B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1279% more annual revenue ($65.01B vs $4.71B). MRK leads profitability with a 28.1% profit margin vs -4.9%. MRK appears more attractively valued with a PEG of 3.36. MRK earns a higher WallStSmart Score of 59/100 (C).
ELAN
Buy51
out of 100
Grade: C-
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.2%
Fair Value
$31.06
Current Price
$21.80
$9.26 discount
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 116.7% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Operating margin of 2.3%
Expensive relative to growth rate
ROE of -3.7% — below average capital efficiency
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 12.2% demonstrates continued momentum.
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 : ELAN
The primary concerns for ELAN are Operating Margin, PEG Ratio, Return on Equity.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ELAN profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.88 — expect wider price swings.
ELAN is growing revenue faster at 12.2% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 51/100), backed by strong 28.1% margins. ELAN offers better value entry with a 17.2% margin of safety. 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.
Elanco Animal Health
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.
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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