WallStSmart

Merck & Company Inc (MRK)vsOracle Corporation (ORCL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 3% more annual revenue ($65.77B vs $64.08B). ORCL leads profitability with a 25.3% profit margin vs 13.6%. ORCL appears more attractively valued with a PEG of 1.14. ORCL earns a higher WallStSmart Score of 71/100 (B).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9

ORCL

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 9.0Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKOvervalued (-14.9%)

Margin of Safety

-14.9%

Fair Value

$97.76

Current Price

$111.38

$13.62 premium

UndervaluedFair: $97.76Overvalued
ORCLSignificantly Overvalued (-71.0%)

Margin of Safety

-71.0%

Fair Value

$113.80

Current Price

$195.95

$82.15 premium

UndervaluedFair: $113.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

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

ORCL6 strengths · Avg: 9.2/10
Market CapQuality
$559.65B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
57.6%10/10

Every $100 of equity generates 58 in profit

Operating MarginProfitability
32.7%10/10

Strong operational efficiency at 32.7%

Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

EPS GrowthGrowth
24.5%8/10

Earnings expanding 24.5% YoY

Areas to Watch

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.282/10

Expensive relative to growth rate

ORCL4 concerns · Avg: 3.3/10
P/E RatioValuation
34.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.8x4/10

Trading at 16.8x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.48B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : ORCL

The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.3% and operating margin at 32.7%. Revenue growth of 21.7% demonstrates continued momentum.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : ORCL

The primary concerns for ORCL are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 4.15 is elevated, increasing financial risk.

Key Dynamics to Monitor

MRK profiles as a value stock while ORCL is a growth play — different risk/reward profiles.

ORCL carries more volatility with a beta of 1.54 — expect wider price swings.

ORCL is growing revenue faster at 21.7% — sustainability is the question.

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

Bottom Line

ORCL scores higher overall (71/100 vs 50/100), backed by strong 25.3% margins and 21.7% 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.

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Oracle Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.

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