WallStSmart

Merck & Company Inc (MRK)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 566% more annual revenue ($65.01B vs $9.76B). SYF leads profitability with a 36.4% profit margin vs 28.1%. SYF appears more attractively valued with a PEG of 3.27. SYF earns a higher WallStSmart Score of 71/100 (B).

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9

SYF

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-141.2%)

Margin of Safety

-141.2%

Fair Value

$49.50

Current Price

$119.37

$69.87 premium

UndervaluedFair: $49.50Overvalued
SYFUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$178.92

Current Price

$67.63

$111.29 discount

UndervaluedFair: $178.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$287.71B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Profit MarginProfitability
36.4%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.45B8/10

Generating 2.5B in free cash flow

Areas to Watch

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

SYF2 concerns · Avg: 2.0/10
PEG RatioValuation
3.272/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : SYF

The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 36.4% and operating margin at 48.5%.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : SYF

The primary concerns for SYF are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

SYF carries more volatility with a beta of 1.41 — expect wider price swings.

SYF is growing revenue faster at 5.0% — sustainability is the question.

SYF generates stronger free cash flow (2.5B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SYF scores higher overall (71/100 vs 59/100), backed by strong 36.4% margins. Both earn "Strong 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.

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Synchrony Financial

FINANCIAL SERVICES · CREDIT SERVICES · USA

Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

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