Electromed Inc (ELMD)vsMerck & Company Inc (MRK)
ELMD
Electromed Inc
$27.25
+2.25%
HEALTHCARE · Cap: $226.72M
MRK
Merck & Company Inc
$144.85
+0.64%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 90131% more annual revenue ($66.57B vs $73.78M). ELMD leads profitability with a 15.3% profit margin vs 4.8%. ELMD appears more attractively valued with a PEG of 0.35. ELMD earns a higher WallStSmart Score of 70/100 (B-).
ELMD
Strong Buy70
out of 100
Grade: B-
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-55.2%
Fair Value
$16.28
Current Price
$27.25
$10.97 premium
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$144.85
$62.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 21 in profit
Earnings expanding 49.0% YoY
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ELMD
The strongest argument for ELMD centers on PEG Ratio, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 15.3% and operating margin at 19.7%. Revenue growth of 11.6% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ELMD
The primary concerns for ELMD are Market Cap.
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
ELMD profiles as a mature stock while MRK is a value play — different risk/reward profiles.
ELMD carries more volatility with a beta of 0.51 — expect wider price swings.
ELMD is growing revenue faster at 11.6% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ELMD scores higher overall (70/100 vs 36/100), backed by strong 15.3% margins and 11.6% 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.
Electromed Inc
HEALTHCARE · MEDICAL DEVICES · USA
Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high-frequency chest wall oscillation (HFCWO) therapy in lung care for patients of all ages in the United States. and internationally. The company is headquartered in New Prague, Minnesota.
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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