Merck & Company Inc (MRK)vsNetflix Inc (NFLX)
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
NFLX
Netflix Inc
$87.49
-0.86%
COMMUNICATION SERVICES · Cap: $371.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 40% more annual revenue ($65.77B vs $46.89B). NFLX leads profitability with a 28.5% profit margin vs 13.6%. NFLX appears more attractively valued with a PEG of 1.29. NFLX earns a higher WallStSmart Score of 77/100 (B+).
MRK
Hold50
out of 100
Grade: D+
NFLX
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.9%
Fair Value
$97.76
Current Price
$111.38
$13.62 premium
Margin of Safety
-56.1%
Fair Value
$56.53
Current Price
$87.49
$30.96 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 49 in profit
Strong operational efficiency at 32.3%
Earnings expanding 86.4% YoY
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 13.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 32.3%. Revenue growth of 16.2% demonstrates continued momentum.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : NFLX
The primary concerns for NFLX are P/E Ratio, Price/Book.
Key Dynamics to Monitor
MRK profiles as a value stock while NFLX is a growth play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.55 — expect wider price swings.
NFLX is growing revenue faster at 16.2% — sustainability is the question.
NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (77/100 vs 50/100), backed by strong 28.5% margins and 16.2% 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.
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.
Visit Website →Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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