WallStSmart

Merck & Company Inc (MRK)vsPrestige Brand Holdings Inc (PBH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 5925% more annual revenue ($66.57B vs $1.10B). PBH leads profitability with a 15.6% profit margin vs 4.8%. PBH appears more attractively valued with a PEG of 1.52. PBH earns a higher WallStSmart Score of 59/100 (C).

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27

PBH

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 7.0Value: 4.7Quality: 6.5
Piotroski: 2/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued
PBHSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$43.25

Current Price

$46.95

$3.70 premium

UndervaluedFair: $43.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

PBH3 strengths · Avg: 8.7/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

Areas to Watch

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

PBH4 concerns · Avg: 3.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Debt/EquityHealth
1.083/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-35.8%2/10

Earnings declined 35.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : PBH

The strongest argument for PBH centers on Price/Book, P/E Ratio, Operating Margin. Profitability is solid with margins at 15.6% and operating margin at 20.8%.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Bear Case : PBH

The primary concerns for PBH are PEG Ratio, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

MRK profiles as a value stock while PBH is a mature play — different risk/reward profiles.

PBH carries more volatility with a beta of 0.33 — expect wider price swings.

PBH is growing revenue faster at 6.5% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

PBH scores higher overall (59/100 vs 36/100), backed by strong 15.6% 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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Prestige Brand Holdings Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Prestige Consumer Healthcare Inc., develops, manufactures, markets, distributes and sells over-the-counter (OTC) healthcare products in the United States and internationally. The company is headquartered in Tarrytown, New York.

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