WallStSmart

Merck & Company Inc (MRK)vsNeoGenomics Inc (NEO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 8587% more annual revenue ($66.57B vs $766.29M). MRK leads profitability with a 4.8% profit margin vs -6.8%. NEO appears more attractively valued with a PEG of 2.09. NEO earns a higher WallStSmart Score of 48/100 (D+).

MRK

Hold

36

out of 100

Grade: F

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

NEO

Hold

48

out of 100

Grade: D+

Growth: 8.0Profit: 2.0Value: 6.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued
NEOUndervalued (+78.2%)

Margin of Safety

+78.2%

Fair Value

$52.45

Current Price

$17.32

$35.13 discount

UndervaluedFair: $52.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

NEO2 strengths · Avg: 9.0/10
EPS GrowthGrowth
130.6%10/10

Earnings expanding 130.6% YoY

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

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

NEO4 concerns · Avg: 2.8/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-12.0%2/10

ROE of -12.0% — below average capital efficiency

Altman Z-ScoreHealth
1.042/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : NEO

The strongest argument for NEO centers on EPS Growth, Price/Book. Revenue growth of 11.2% demonstrates continued momentum.

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.

Bear Case : NEO

The primary concerns for NEO are PEG Ratio, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

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

NEO carries more volatility with a beta of 1.75 — expect wider price swings.

NEO is growing revenue faster at 11.2% — sustainability is the question.

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

Bottom Line

NEO scores higher overall (48/100 vs 36/100) and 11.2% revenue growth. Both earn "Hold" 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.

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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NeoGenomics Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States, Europe, and Asia. The company is headquartered in Fort Myers, Florida.

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