Merck & Company Inc (MRK)vsPenumbra Inc (PEN)
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
PEN
Penumbra Inc
$322.23
-0.75%
HEALTHCARE · Cap: $12.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 4585% more annual revenue ($65.77B vs $1.40B). MRK leads profitability with a 13.6% profit margin vs 12.7%. PEN appears more attractively valued with a PEG of 0.73. PEN earns a higher WallStSmart Score of 64/100 (C+).
MRK
Hold50
out of 100
Grade: D+
PEN
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.9%
Fair Value
$97.76
Current Price
$111.38
$13.62 premium
Margin of Safety
+0.8%
Fair Value
$340.90
Current Price
$322.23
$18.67 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Earnings expanding 38.3% YoY
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 8.9x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : PEN
The strongest argument for PEN centers on Altman Z-Score, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : PEN
The primary concerns for PEN are Price/Book, P/E Ratio. A P/E of 74.7x leaves little room for execution misses.
Key Dynamics to Monitor
MRK profiles as a value stock while PEN is a growth play — different risk/reward profiles.
PEN carries more volatility with a beta of 0.73 — expect wider price swings.
PEN is growing revenue faster at 22.1% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
PEN scores higher overall (64/100 vs 50/100) and 22.1% revenue growth. 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.
Visit Website →Penumbra Inc
HEALTHCARE · MEDICAL DEVICES · USA
Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, and internationally. The company is headquartered in Alameda, California.
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