WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 17455% more annual revenue ($65.77B vs $374.64M). INMD leads profitability with a 23.3% profit margin vs 13.6%. INMD appears more attractively valued with a PEG of 2.90. INMD earns a higher WallStSmart Score of 54/100 (C-).

INMD

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 7.3Quality: 8.5
Piotroski: 2/9Altman Z: 8.64

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INMDUndervalued (+59.0%)

Margin of Safety

+59.0%

Fair Value

$34.72

Current Price

$13.49

$21.23 discount

UndervaluedFair: $34.72Overvalued
MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INMD5 strengths · Avg: 9.8/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.6410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

INMD4 concerns · Avg: 2.5/10
Market CapQuality
$823.35M3/10

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
-30.8%2/10

Earnings declined 30.8%

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 23.3% and operating margin at 12.3%.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

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 P/E Ratio, Revenue Growth, Debt/Equity.

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 1.93 — expect wider price swings.

INMD is growing revenue faster at 5.3% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

INMD scores higher overall (54/100 vs 50/100), backed by strong 23.3% margins. 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.

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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