WallStSmart

Merck & Company Inc (MRK)vsNational Research Corp (NRC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 47337% more annual revenue ($65.77B vs $138.64M). MRK leads profitability with a 13.6% profit margin vs 6.5%. NRC appears more attractively valued with a PEG of 1.32. MRK earns a higher WallStSmart Score of 50/100 (D+).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30

NRC

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 6.7Quality: 3.0
Piotroski: 3/9Altman Z: 1.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued
NRCUndervalued (+50.5%)

Margin of Safety

+50.5%

Fair Value

$27.80

Current Price

$19.75

$8.05 discount

UndervaluedFair: $27.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

NRC1 strengths · Avg: 10.0/10
Return on EquityProfitability
66.9%10/10

Every $100 of equity generates 67 in profit

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

NRC4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

Market CapQuality
$431.35M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : NRC

The strongest argument for NRC centers on Return on Equity. PEG of 1.32 suggests the stock is reasonably priced for its growth.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Bear Case : NRC

The primary concerns for NRC are Revenue Growth, Market Cap, Profit Margin. A P/E of 49.1x leaves little room for execution misses. Debt-to-equity of 5.78 is elevated, increasing financial risk.

Key Dynamics to Monitor

NRC carries more volatility with a beta of 0.40 — expect wider price swings.

MRK is growing revenue faster at 4.9% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (50/100 vs 48/100). NRC offers better value entry with a 50.5% margin of safety. 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.

Visit Website →

National Research Corp

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

National Research Corporation provides analytics and information that make it easy to measure and improve the patient and employee experience in the United States and Canada. The company is headquartered in Lincoln, Nebraska.

Want to dig deeper into these stocks?