GlaxoSmithKline PLC ADR (GSK)vsMerck & Company Inc (MRK)
GSK
GlaxoSmithKline PLC ADR
$50.38
-1.02%
HEALTHCARE · Cap: $102.18B
MRK
Merck & Company Inc
$113.11
+0.35%
HEALTHCARE · Cap: $277.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 101% more annual revenue ($65.77B vs $32.78B). GSK leads profitability with a 17.8% profit margin vs 13.6%. GSK appears more attractively valued with a PEG of 0.50. GSK earns a higher WallStSmart Score of 66/100 (B-).
GSK
Strong Buy66
out of 100
Grade: B-
MRK
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3.1%
Fair Value
$56.73
Current Price
$50.38
$6.35 premium
Margin of Safety
-15.7%
Fair Value
$97.76
Current Price
$113.11
$15.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 36.3%
Large-cap with strong market position
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 38.1%
Generating 2.9B in free cash flow
Areas to Watch
1.5% revenue growth
Elevated debt levels
Distress zone — elevated risk
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 36.3%. PEG of 0.50 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.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, Altman Z-Score.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
GSK carries more volatility with a beta of 0.30 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GSK scores higher overall (66/100 vs 53/100), backed by strong 17.8% margins. 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.
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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