GlaxoSmithKline PLC ADR (GSK)vsMerck & Company Inc (MRK)
GSK
GlaxoSmithKline PLC ADR
$49.13
-0.77%
HEALTHCARE · Cap: $99.19B
MRK
Merck & Company Inc
$148.49
-0.78%
HEALTHCARE · Cap: $368.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 101% more annual revenue ($67.38B vs $33.54B). GSK leads profitability with a 13.0% profit margin vs 3.6%. MRK appears more attractively valued with a PEG of 2.82. GSK earns a higher WallStSmart Score of 52/100 (C-).
GSK
Buy52
out of 100
Grade: C-
MRK
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-24.2%
Fair Value
$47.08
Current Price
$49.13
$2.05 premium
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$148.49
$63.83 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.1%
Large-cap with strong market position
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Generating 2.2B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Areas to Watch
4.0% revenue growth
Elevated debt levels
Expensive relative to growth rate
Earnings declined 22.8%
Trading at 8.7x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on Operating Margin, Market Cap, Return on Equity.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, PEG Ratio.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
GSK carries more volatility with a beta of 0.28 — expect wider price swings.
MRK is growing revenue faster at 4.7% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GSK scores higher overall (52/100 vs 44/100). 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.
GlaxoSmithKline PLC ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.
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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