Merck & Company Inc (MRK)vsWaters Corporation (WAT)
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1954% more annual revenue ($65.01B vs $3.17B). MRK leads profitability with a 28.1% profit margin vs 20.3%. WAT appears more attractively valued with a PEG of 1.25. WAT earns a higher WallStSmart Score of 60/100 (C).
MRK
Buy59
out of 100
Grade: C
WAT
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Margin of Safety
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Strong operational efficiency at 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Moderate valuation
Earnings declined 3.1%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WAT
The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
MRK profiles as a value stock while WAT is a mature play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
WAT is growing revenue faster at 6.8% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
WAT scores higher overall (60/100 vs 59/100), backed by strong 20.3% margins. Both earn "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.
Visit Website →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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