WallStSmart

Electromed Inc (ELMD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 94309% more annual revenue ($65.01B vs $68.86M). MRK leads profitability with a 28.1% profit margin vs 13.1%. ELMD appears more attractively valued with a PEG of 0.35. ELMD earns a higher WallStSmart Score of 68/100 (B-).

ELMD

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 6.0Quality: 5.0

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

ELMDSignificantly Overvalued (-26.6%)

Margin of Safety

-26.6%

Fair Value

$19.96

Current Price

$25.10

$5.14 premium

UndervaluedFair: $19.96Overvalued
MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELMD4 strengths · Avg: 8.8/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

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
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

ELMD2 concerns · Avg: 3.5/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Market CapQuality
$215.16M3/10

Smaller company, higher risk/reward

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

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ELMD

The strongest argument for ELMD centers on PEG Ratio, Return on Equity, Revenue Growth. Revenue growth of 16.3% demonstrates continued momentum. PEG of 0.35 suggests the stock is reasonably priced for its growth.

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 : ELMD

The primary concerns for ELMD are P/E Ratio, Market Cap.

Bear Case : MRK

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

Key Dynamics to Monitor

ELMD profiles as a growth stock while MRK is a value play — different risk/reward profiles.

ELMD carries more volatility with a beta of 0.32 — expect wider price swings.

ELMD is growing revenue faster at 16.3% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

ELMD scores higher overall (68/100 vs 59/100) and 16.3% revenue growth. Both earn "Strong 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.

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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