WallStSmart

Innoviva Inc (INVA)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 15705% more annual revenue ($65.01B vs $411.33M). INVA leads profitability with a 65.9% profit margin vs 28.1%. INVA appears more attractively valued with a PEG of 0.35. INVA earns a higher WallStSmart Score of 84/100 (A-).

INVA

Exceptional Buy

84

out of 100

Grade: A-

Growth: 8.0Profit: 9.0Value: 8.3Quality: 7.3
Piotroski: 5/9Altman Z: 2.17

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

Intrinsic value data unavailable for INVA.

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

INVA6 strengths · Avg: 10.0/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
65.9%10/10

Keeps 66 of every $100 in revenue as profit

Operating MarginProfitability
34.7%10/10

Strong operational efficiency at 34.7%

EPS GrowthGrowth
590.0%10/10

Earnings expanding 590.0% 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

INVA1 concerns · Avg: 3.0/10
Market CapQuality
$1.71B3/10

Smaller company, higher risk/reward

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 : INVA

The strongest argument for INVA centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 65.9% and operating margin at 34.7%. Revenue growth of 24.8% demonstrates continued momentum.

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 : INVA

The primary concerns for INVA are Market Cap.

Bear Case : MRK

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

Key Dynamics to Monitor

INVA profiles as a growth stock while MRK is a value play — different risk/reward profiles.

INVA carries more volatility with a beta of 0.40 — expect wider price swings.

INVA is growing revenue faster at 24.8% — sustainability is the question.

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

Bottom Line

INVA scores higher overall (84/100 vs 59/100), backed by strong 65.9% margins and 24.8% revenue growth. Both earn "Exceptional 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.

Innoviva Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Innoviva, Inc. is dedicated to the development and commercialization of pharmaceutical products. The company is headquartered in Burlingame, California.

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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