Merck & Company Inc (MRK)vsPhilip Morris International Inc (PM)
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
PM
Philip Morris International Inc
$170.99
-0.07%
CONSUMER DEFENSIVE · Cap: $266.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 59% more annual revenue ($65.77B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 13.6%. PM appears more attractively valued with a PEG of 1.93. PM earns a higher WallStSmart Score of 54/100 (C-).
MRK
Hold50
out of 100
Grade: D+
PM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.8%
Fair Value
$97.84
Current Price
$111.38
$13.54 premium
Margin of Safety
-47.7%
Fair Value
$115.79
Current Price
$170.99
$55.20 premium
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
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 36.0%.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Key Dynamics to Monitor
MRK profiles as a value stock while PM is a mature play — different risk/reward profiles.
PM carries more volatility with a beta of 0.39 — expect wider price swings.
PM is growing revenue faster at 9.1% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
PM scores higher overall (54/100 vs 50/100), backed by strong 26.7% 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.
Visit Website →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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