Gilead Sciences Inc (GILD)vsMerck & Company Inc (MRK)
GILD
Gilead Sciences Inc
$143.72
-0.75%
HEALTHCARE · Cap: $179.56B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 119% more annual revenue ($66.57B vs $30.46B). MRK leads profitability with a 4.8% profit margin vs -10.6%. GILD appears more attractively valued with a PEG of 1.95. GILD earns a higher WallStSmart Score of 54/100 (C-).
GILD
Buy54
out of 100
Grade: C-
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+35.7%
Fair Value
$223.50
Current Price
$143.72
$79.78 discount
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.7%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Generating 3.5B in free cash flow
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 15.1x book value
Grey zone — moderate risk
ROE of -27.4% — below average capital efficiency
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 : GILD
The strongest argument for GILD centers on Operating Margin, EPS Growth, Market Cap. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : GILD
The primary concerns for GILD are PEG Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 2.22 is elevated, increasing financial risk.
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
GILD profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
GILD carries more volatility with a beta of 0.35 — expect wider price swings.
GILD is growing revenue faster at 10.2% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (54/100 vs 36/100) and 10.2% revenue growth. Both earn "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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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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