WallStSmart

Merck & Company Inc (MRK)vsTheravance Biopharma Inc (TBPH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 59812% more annual revenue ($65.77B vs $109.78M). TBPH leads profitability with a 104.3% profit margin vs 13.6%. TBPH trades at a lower P/E of 7.6x. TBPH earns a higher WallStSmart Score of 52/100 (C-).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9

TBPH

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 6.5Value: 8.3Quality: 7.0
Piotroski: 4/9Altman Z: -2.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKOvervalued (-13.8%)

Margin of Safety

-13.8%

Fair Value

$97.84

Current Price

$111.28

$13.44 premium

UndervaluedFair: $97.84Overvalued
TBPHUndervalued (+69.2%)

Margin of Safety

+69.2%

Fair Value

$63.35

Current Price

$16.52

$46.83 discount

UndervaluedFair: $63.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

TBPH6 strengths · Avg: 9.2/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
50.2%10/10

Every $100 of equity generates 50 in profit

Profit MarginProfitability
104.3%10/10

Keeps 104 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

Areas to Watch

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.282/10

Expensive relative to growth rate

TBPH4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$876.78M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-2.612/10

Distress zone — elevated risk

Operating MarginProfitability
-33.1%1/10

Operating margin of -33.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bull Case : TBPH

The strongest argument for TBPH centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 104.3% and operating margin at -33.1%. Revenue growth of 15.0% demonstrates continued momentum.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : TBPH

The primary concerns for TBPH are EPS Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

MRK profiles as a value stock while TBPH is a mature play — different risk/reward profiles.

MRK carries more volatility with a beta of 0.20 — expect wider price swings.

TBPH is growing revenue faster at 15.0% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

TBPH scores higher overall (52/100 vs 50/100), backed by strong 104.3% margins and 15.0% revenue growth. 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 →

Theravance Biopharma Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Theravance Biopharma, Inc., a diversified biopharmaceutical company, discovers, develops, and markets organ-selective drugs in the United States, Europe, and Asia. The company is headquartered in George Town, the Cayman Islands.

Visit Website →

Want to dig deeper into these stocks?