WallStSmart

Grifols SA ADR (GRFS)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 765% more annual revenue ($65.01B vs $7.52B). MRK leads profitability with a 28.1% profit margin vs 5.0%. GRFS appears more attractively valued with a PEG of 0.23. GRFS earns a higher WallStSmart Score of 71/100 (B).

GRFS

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 5.5Value: 10.0Quality: 6.5
Piotroski: 3/9Altman Z: 1.13

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

GRFSUndervalued (+68.8%)

Margin of Safety

+68.8%

Fair Value

$29.48

Current Price

$7.71

$21.77 discount

UndervaluedFair: $29.48Overvalued
MRKSignificantly Overvalued (-141.2%)

Margin of Safety

-141.2%

Fair Value

$49.50

Current Price

$119.37

$69.87 premium

UndervaluedFair: $49.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GRFS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2310/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$287.71B10/10

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
16.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

GRFS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Debt/EquityHealth
1.873/10

Elevated debt levels

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

Weak financial health signals

PEG RatioValuation
3.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : GRFS

The strongest argument for GRFS centers on PEG Ratio, Price/Book, P/E Ratio. PEG of 0.23 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 : GRFS

The primary concerns for GRFS are Revenue Growth, Return on Equity, Profit Margin. Debt-to-equity of 1.87 is elevated, increasing financial risk. Thin 5.0% margins leave little buffer for downturns.

Bear Case : MRK

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

Key Dynamics to Monitor

GRFS carries more volatility with a beta of 1.19 — expect wider price swings.

MRK is growing revenue faster at 5.0% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GRFS scores higher overall (71/100 vs 59/100). 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.

Grifols SA ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Grifols, SA is dedicated to obtaining, manufacturing, preparing and selling therapeutic products, mainly blood derivatives. The company is headquartered in Barcelona, Spain.

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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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