WallStSmart

InMode Ltd (INMD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 17447% more annual revenue ($65.01B vs $370.50M). MRK leads profitability with a 28.1% profit margin vs 25.3%. INMD appears more attractively valued with a PEG of 2.90. MRK earns a higher WallStSmart Score of 59/100 (C).

INMD

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 8.0Value: 7.3Quality: 8.5
Piotroski: 2/9Altman Z: 8.64

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

INMDUndervalued (+65.7%)

Margin of Safety

+65.7%

Fair Value

$41.53

Current Price

$14.47

$27.06 discount

UndervaluedFair: $41.53Overvalued
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

INMD6 strengths · Avg: 9.5/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.6410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
25.0%8/10

Strong operational efficiency at 25.0%

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

INMD4 concerns · Avg: 2.5/10
Market CapQuality
$906.66M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.902/10

Expensive relative to growth rate

EPS GrowthGrowth
-63.5%2/10

Earnings declined 63.5%

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 : INMD

The strongest argument for INMD centers on P/E Ratio, Price/Book, Debt/Equity. Profitability is solid with margins at 25.3% and operating margin at 25.0%.

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 : INMD

The primary concerns for INMD are Market Cap, Piotroski F-Score, PEG Ratio.

Bear Case : MRK

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

Key Dynamics to Monitor

INMD profiles as a mature stock while MRK is a value play — different risk/reward profiles.

INMD carries more volatility with a beta of 2.12 — expect wider price swings.

INMD is growing revenue faster at 6.1% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (59/100 vs 58/100), backed by strong 28.1% margins. INMD offers better value entry with a 65.7% margin of safety. 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.

InMode Ltd

HEALTHCARE · MEDICAL DEVICES · USA

InMode Ltd. designs, develops, manufactures and markets minimally invasive aesthetic medical products based on its proprietary RF-assisted lipolysis and deep subdermal fractional RF technologies. The company is headquartered in Yokneam, Israel.

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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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