Merck & Company Inc (MRK)vsZimmer Biomet Holdings Inc (ZBH)
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
ZBH
Zimmer Biomet Holdings Inc
$82.43
+2.95%
HEALTHCARE · Cap: $15.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 673% more annual revenue ($65.01B vs $8.41B). MRK leads profitability with a 28.1% profit margin vs 9.1%. ZBH appears more attractively valued with a PEG of 0.55. ZBH earns a higher WallStSmart Score of 71/100 (B).
MRK
Buy59
out of 100
Grade: C
ZBH
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Margin of Safety
+35.9%
Fair Value
$149.15
Current Price
$82.43
$66.72 discount
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
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 34.1% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
ROE of 6.1% — below average capital efficiency
Weak financial health signals
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 : ZBH
The strongest argument for ZBH centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.55 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 : ZBH
The primary concerns for ZBH are Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
ZBH carries more volatility with a beta of 0.61 — expect wider price swings.
ZBH is growing revenue faster at 9.3% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ZBH scores higher overall (71/100 vs 59/100). 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.
Visit Website →Zimmer Biomet Holdings Inc
HEALTHCARE · MEDICAL DEVICES · USA
Zimmer Biomet is a publicly traded medical device company. The company is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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