Merck & Company Inc (MRK)vsConstellation Brands Inc Class A (STZ)
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
STZ
Constellation Brands Inc Class A
$148.21
-1.36%
CONSUMER DEFENSIVE · Cap: $25.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 620% more annual revenue ($65.77B vs $9.14B). STZ leads profitability with a 18.5% profit margin vs 13.6%. STZ appears more attractively valued with a PEG of 2.74. STZ earns a higher WallStSmart Score of 56/100 (C).
MRK
Hold50
out of 100
Grade: D+
STZ
Buy56
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
Intrinsic value data unavailable for STZ.
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
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : STZ
The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
MRK profiles as a value stock while STZ is a declining play — different risk/reward profiles.
STZ carries more volatility with a beta of 0.42 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
STZ scores higher overall (56/100 vs 50/100), backed by strong 18.5% 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 →Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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