WallStSmart

GlaxoSmithKline PLC ADR (GSK)vsMerck & Company Inc (MRK)

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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

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.0Quality: 4.5
Piotroski: 6/9Altman Z: 1.34

MRK

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 6.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GSKSignificantly Overvalued (-24.2%)

Margin of Safety

-24.2%

Fair Value

$47.08

Current Price

$49.13

$2.05 premium

UndervaluedFair: $47.08Overvalued
MRKSignificantly Overvalued (-76.6%)

Margin of Safety

-76.6%

Fair Value

$84.66

Current Price

$148.49

$63.83 premium

UndervaluedFair: $84.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GSK5 strengths · Avg: 8.8/10
Operating MarginProfitability
32.1%10/10

Strong operational efficiency at 32.1%

Market CapQuality
$99.19B9/10

Large-cap with strong market position

Return on EquityProfitability
27.5%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.21B8/10

Generating 2.2B in free cash flow

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$368.89B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

GSK4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Debt/EquityHealth
1.033/10

Elevated debt levels

PEG RatioValuation
6.122/10

Expensive relative to growth rate

EPS GrowthGrowth
-22.8%2/10

Earnings declined 22.8%

MRK4 concerns · Avg: 3.5/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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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