WallStSmart

Merck & Company Inc (MRK)vsOrganon & Co (OGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 946% more annual revenue ($65.01B vs $6.22B). MRK leads profitability with a 28.1% profit margin vs 3.0%. OGN trades at a lower P/E of 8.5x. MRK earns a higher WallStSmart Score of 59/100 (C).

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9

OGN

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 7.0Value: 5.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-141.2%)

Margin of Safety

-141.2%

Fair Value

$49.50

Current Price

$119.37

$69.87 premium

UndervaluedFair: $49.50Overvalued
OGNSignificantly Overvalued (-56.9%)

Margin of Safety

-56.9%

Fair Value

$4.90

Current Price

$6.10

$1.20 premium

UndervaluedFair: $4.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$287.71B10/10

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
16.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

OGN3 strengths · Avg: 9.3/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.6%10/10

Every $100 of equity generates 31 in profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

OGN4 concerns · Avg: 2.5/10
Market CapQuality
$1.59B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Revenue GrowthGrowth
-5.3%2/10

Revenue declined 5.3%

EPS GrowthGrowth
-55.8%2/10

Earnings declined 55.8%

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : OGN

The strongest argument for OGN centers on P/E Ratio, Return on Equity, Price/Book.

Bear Case : MRK

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

Bear Case : OGN

The primary concerns for OGN are Market Cap, Profit Margin, Revenue Growth. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

OGN carries more volatility with a beta of 0.57 — expect wider price swings.

MRK is growing revenue faster at 5.0% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

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

Bottom Line

MRK scores higher overall (59/100 vs 47/100), backed by strong 28.1% margins. Both earn "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.

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Organon & Co

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Organon & Co. is an American pharmaceutical company headquartered in Jersey City, New Jersey. Organon specializes in the following core therapeutic fields: reproductive medicine, contraception, psychiatry, Hormone replacement therapy (HRT), and anesthesia. The company sells to international markets.

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