Merck & Company Inc (MRK)vsSmith & Nephew SNATS Inc (SNN)
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
SNN
Smith & Nephew SNATS Inc
$30.93
+1.81%
HEALTHCARE · Cap: $12.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 955% more annual revenue ($65.01B vs $6.16B). MRK leads profitability with a 28.1% profit margin vs 10.1%. SNN appears more attractively valued with a PEG of 0.63. SNN earns a higher WallStSmart Score of 62/100 (C+).
MRK
Buy59
out of 100
Grade: C
SNN
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Margin of Safety
+43.0%
Fair Value
$61.96
Current Price
$30.93
$31.03 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Earnings expanding 70.4% YoY
Growing faster than its price suggests
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Trading at 12.4x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bull Case : SNN
The strongest argument for SNN centers on EPS Growth, PEG Ratio. PEG of 0.63 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : SNN
The primary concerns for SNN are Price/Book.
Key Dynamics to Monitor
SNN carries more volatility with a beta of 0.74 — expect wider price swings.
SNN is growing revenue faster at 7.4% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SNN scores higher overall (62/100 vs 59/100). Both earn "Buy" and "Buy" 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 →Smith & Nephew SNATS Inc
HEALTHCARE · MEDICAL DEVICES · USA
Smith & Nephew plc develops, manufactures, markets and sells medical devices worldwide. The company is headquartered in Watford, the United Kingdom.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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