Merck & Company Inc (MRK)vsSTERIS plc (STE)
MRK
Merck & Company Inc
$146.35
+3.83%
HEALTHCARE · Cap: $360.08B
STE
STERIS plc
$228.78
+0.13%
HEALTHCARE · Cap: $22.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1003% more annual revenue ($66.57B vs $6.04B). STE leads profitability with a 13.3% profit margin vs 4.8%. STE appears more attractively valued with a PEG of 1.77. STE earns a higher WallStSmart Score of 60/100 (C).
MRK
Hold36
out of 100
Grade: F
STE
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$83.64
Current Price
$146.35
$62.71 premium
Margin of Safety
-48.5%
Fair Value
$163.94
Current Price
$228.78
$64.84 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Trading at 8.6x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : STE
The strongest argument for STE centers on Debt/Equity.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 115.8x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : STE
The primary concerns for STE are PEG Ratio, P/E Ratio.
Key Dynamics to Monitor
STE carries more volatility with a beta of 0.93 — expect wider price swings.
STE is growing revenue faster at 7.3% — 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
STE scores higher overall (60/100 vs 36/100). 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 →STERIS plc
HEALTHCARE · MEDICAL DEVICES · USA
Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.
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