WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 973% more annual revenue ($65.77B vs $6.13B). MRK leads profitability with a 13.6% profit margin vs 3.4%. OGN trades at a lower P/E of 17.4x. 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: 2.27

OGN

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 7.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-58.0%)

Margin of Safety

-58.0%

Fair Value

$81.23

Current Price

$128.58

$47.35 premium

UndervaluedFair: $81.23Overvalued
OGNUndervalued (+37.4%)

Margin of Safety

+37.4%

Fair Value

$12.29

Current Price

$13.60

$1.31 discount

UndervaluedFair: $12.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$316.14B10/10

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

OGN3 strengths · Avg: 8.7/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.7%8/10

Strong operational efficiency at 20.7%

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
36.0x4/10

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

OGN4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.3%2/10

Revenue declined 2.3%

EPS GrowthGrowth
-28.3%2/10

Earnings declined 28.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : OGN

The strongest argument for OGN centers on Return on Equity, P/E Ratio, Operating Margin.

Bear Case : MRK

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

Bear Case : OGN

The primary concerns for OGN are Profit Margin, Piotroski F-Score, Revenue Growth. Debt-to-equity of 9.49 is elevated, increasing financial risk. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

OGN carries more volatility with a beta of 1.54 — 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 49/100). OGN offers better value entry with a 37.4% 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 →

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.

Want to dig deeper into these stocks?