Merck & Company Inc (MRK)vsWaters Corporation (WAT)
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
WAT
Waters Corporation
$408.34
+1.67%
HEALTHCARE · Cap: $39.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1333% more annual revenue ($66.57B vs $4.64B). MRK leads profitability with a 4.8% profit margin vs 3.6%. WAT appears more attractively valued with a PEG of 1.52. WAT earns a higher WallStSmart Score of 45/100 (D+).
MRK
Hold36
out of 100
Grade: F
WAT
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Margin of Safety
-46.3%
Fair Value
$225.08
Current Price
$408.34
$183.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Revenue surging 113.4% year-over-year
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
ROE of 1.1% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score, Price/Book. Revenue growth of 113.4% demonstrates continued momentum.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Return on Equity, Profit Margin. A P/E of 102.5x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
MRK profiles as a value stock while WAT is a hypergrowth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.19 — expect wider price swings.
WAT is growing revenue faster at 113.4% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
WAT scores higher overall (45/100 vs 36/100) and 113.4% revenue growth. Both earn "Hold" 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?