Merck & Company Inc (MRK)vsPenumbra Inc (PEN)
MRK
Merck & Company Inc
$146.72
-0.14%
HEALTHCARE · Cap: $368.89B
PEN
Penumbra Inc
$319.21
-0.59%
HEALTHCARE · Cap: $12.76B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 4377% more annual revenue ($67.38B vs $1.50B). PEN leads profitability with a 10.7% profit margin vs 3.6%. MRK appears more attractively valued with a PEG of 2.82. MRK earns a higher WallStSmart Score of 44/100 (D).
MRK
Hold44
out of 100
Grade: D
PEN
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$146.72
$62.06 premium
Margin of Safety
-9.4%
Fair Value
$309.07
Current Price
$319.21
$10.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Trading at 8.6x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Trading at 8.2x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 23.5%
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, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : PEN
The primary concerns for PEN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 79.6x leaves little room for execution misses.
Key Dynamics to Monitor
PEN carries more volatility with a beta of 0.70 — expect wider price swings.
PEN is growing revenue faster at 14.9% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (44/100 vs 42/100). 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 →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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