WallStSmart

Jazz Pharmaceuticals PLC (JAZZ)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1423% more annual revenue ($65.01B vs $4.27B). MRK leads profitability with a 28.1% profit margin vs -8.3%. JAZZ appears more attractively valued with a PEG of 0.66. MRK earns a higher WallStSmart Score of 59/100 (C).

JAZZ

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 7.7Quality: 4.8
Piotroski: 3/9Altman Z: 1.04

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

JAZZUndervalued (+56.4%)

Margin of Safety

+56.4%

Fair Value

$381.38

Current Price

$199.92

$181.46 discount

UndervaluedFair: $381.38Overvalued
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

JAZZ3 strengths · Avg: 8.0/10
PEG RatioValuation
0.668/10

Growing faster than its price suggests

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.1%8/10

Strong operational efficiency at 27.1%

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

JAZZ4 concerns · Avg: 2.8/10
EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-8.5%2/10

ROE of -8.5% — below average capital efficiency

Altman Z-ScoreHealth
1.042/10

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 : JAZZ

The strongest argument for JAZZ centers on PEG Ratio, Price/Book, Operating Margin. Revenue growth of 10.1% demonstrates continued momentum. PEG of 0.66 suggests the stock is reasonably priced for its growth.

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 : JAZZ

The primary concerns for JAZZ are EPS Growth, Piotroski F-Score, Return on Equity.

Bear Case : MRK

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

Key Dynamics to Monitor

JAZZ profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.

MRK carries more volatility with a beta of 0.28 — expect wider price swings.

JAZZ is growing revenue faster at 10.1% — 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 55/100), backed by strong 28.1% margins. JAZZ offers better value entry with a 56.4% 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.

Jazz Pharmaceuticals PLC

HEALTHCARE · BIOTECHNOLOGY · USA

Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and markets pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. The company is headquartered in Dublin, Ireland.

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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