WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1347% more annual revenue ($66.57B vs $4.60B). JAZZ leads profitability with a 20.4% profit margin vs 4.8%. JAZZ appears more attractively valued with a PEG of 0.96. JAZZ earns a higher WallStSmart Score of 72/100 (B).

JAZZ

Strong Buy

72

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 8.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.87

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JAZZUndervalued (+51.8%)

Margin of Safety

+51.8%

Fair Value

$344.71

Current Price

$245.80

$98.91 discount

UndervaluedFair: $344.71Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JAZZ5 strengths · Avg: 8.2/10
Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

PEG RatioValuation
0.968/10

Growing faster than its price suggests

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

JAZZ2 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : JAZZ

The strongest argument for JAZZ centers on Profit Margin, PEG Ratio, P/E Ratio. Profitability is solid with margins at 20.4% and operating margin at 26.9%. Revenue growth of 15.5% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : JAZZ

The primary concerns for JAZZ are EPS Growth, Altman Z-Score.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

JAZZ carries more volatility with a beta of 0.36 — expect wider price swings.

JAZZ is growing revenue faster at 15.5% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

JAZZ scores higher overall (72/100 vs 36/100), backed by strong 20.4% margins and 15.5% revenue growth. Both earn "Strong 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.

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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