WallStSmart

Masimo Corporation (MASI)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 4158% more annual revenue ($65.01B vs $1.53B). MRK leads profitability with a 28.1% profit margin vs -9.9%. MRK appears more attractively valued with a PEG of 3.36. MRK earns a higher WallStSmart Score of 59/100 (C).

MASI

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 4.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.44

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

MASIUndervalued (+14.3%)

Margin of Safety

+14.3%

Fair Value

$157.54

Current Price

$178.46

$20.92 discount

UndervaluedFair: $157.54Overvalued
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

MASI2 strengths · Avg: 9.5/10
EPS GrowthGrowth
214.4%10/10

Earnings expanding 214.4% YoY

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

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

MASI4 concerns · Avg: 2.3/10
Price/BookValuation
12.9x4/10

Trading at 12.9x book value

PEG RatioValuation
4.832/10

Expensive relative to growth rate

P/E RatioValuation
46.5x2/10

Premium valuation, high expectations priced in

Profit MarginProfitability
-9.9%1/10

Currently unprofitable

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 : MASI

The strongest argument for MASI centers on EPS Growth, Return on Equity. Revenue growth of 12.0% 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 : MASI

The primary concerns for MASI are Price/Book, PEG Ratio, P/E Ratio. A P/E of 46.5x leaves little room for execution misses.

Bear Case : MRK

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

Key Dynamics to Monitor

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

MASI carries more volatility with a beta of 1.20 — expect wider price swings.

MASI is growing revenue faster at 12.0% — 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 53/100), backed by strong 28.1% margins. 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.

Masimo Corporation

HEALTHCARE · MEDICAL DEVICES · USA

Masimo Corporation develops, manufactures and markets non-invasive monitoring technologies and hospital automation solutions globally. The company is headquartered in Irvine, California.

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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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