WallStSmart

Illumina Inc (ILMN)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1397% more annual revenue ($65.01B vs $4.34B). MRK leads profitability with a 28.1% profit margin vs 19.6%. ILMN appears more attractively valued with a PEG of 2.31. ILMN earns a higher WallStSmart Score of 64/100 (C+).

ILMN

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 6.7Quality: 5.3
Piotroski: 5/9Altman Z: 1.62

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

ILMNUndervalued (+60.5%)

Margin of Safety

+60.5%

Fair Value

$294.98

Current Price

$126.74

$168.24 discount

UndervaluedFair: $294.98Overvalued
MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ILMN2 strengths · Avg: 10.0/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
86.4%10/10

Earnings expanding 86.4% YoY

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

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
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

ILMN2 concerns · Avg: 4.0/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.624/10

Distress zone — elevated risk

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

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ILMN

The strongest argument for ILMN centers on Return on Equity, EPS Growth. Profitability is solid with margins at 19.6% and operating margin at 19.7%.

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 : ILMN

The primary concerns for ILMN are PEG Ratio, Altman Z-Score.

Bear Case : MRK

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

Key Dynamics to Monitor

ILMN carries more volatility with a beta of 1.49 — 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 DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ILMN scores higher overall (64/100 vs 59/100), backed by strong 19.6% margins. Both earn "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.

Illumina Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Illumina, Inc. is an American company. Incorporated on April 1, 1998, Illumina develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The company provides a line of products and services that serves the sequencing, genotyping and gene expression, and proteomics markets. Its headquarters are located in San Diego, California.

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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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