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ACAD vs MRK

ACAD
ACADIA Pharmaceuticals Inc.
NEUTRAL
Price
$20.61
Market Cap
$3.51B
Sector
Healthcare
AI Confidence
78%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ACAD
8.96
MRK
16.66
Forward P/E
ACAD
22.78
MRK
12.42
P/B Ratio
ACAD
2.86
MRK
5.7
P/S Ratio
ACAD
3.28
MRK
4.61
EV/EBITDA
ACAD
23.56
MRK
11.46

Profitability

Gross Margin
ACAD
61.01%
MRK
77.21%
Operating Margin
ACAD
6.12%
MRK
32.77%
Profit Margin
ACAD
36.49%
MRK
28.08%
ROE
ACAD
39.89%
MRK
36.88%
ROA
ACAD
4.76%
MRK
12.04%

Growth

Revenue Growth
ACAD
9.4%
MRK
5.0%
Earnings Growth
ACAD
86.2%
MRK
-19.3%

Financial Health

Debt/Equity
ACAD
0.04
MRK
0.96
Current Ratio
ACAD
3.83
MRK
1.54
Quick Ratio
ACAD
3.49
MRK
0.96

Dividends

Dividend Yield
ACAD
--
MRK
2.83%
Payout Ratio
ACAD
0.0%
MRK
45.05%

AI Verdict

ACAD NEUTRAL

ACAD demonstrates strong financial health with a Piotroski F-Score of 7/9, indicating solid operational efficiency and profitability. The company trades below its Graham Number ($19.31) and intrinsic value estimate ($67.85), suggesting potential undervaluation on a defensive basis. However, recent earnings growth has reversed sharply, with year-over-year EPS declining by 83.7% and Q/Q growth at -66.7%, raising concerns about sustainability. Insider selling activity over the past six months, totaling $1.17M, adds bearish sentiment despite the strong F-Score. Analysts remain optimistic with a buy recommendation and a target price of $31.85, but the current price is still significantly below intrinsic value.

Strengths
Piotroski F-Score of 7/9 indicates strong financial health and operational efficiency
High gross margin (61.01%) and profit margin (36.49%) reflect strong pricing power and cost control
Extremely low debt/equity ratio (0.04) and high current/quick ratios (3.83/3.49) signal robust liquidity and minimal financial risk
Risks
Recent earnings growth has reversed sharply: YoY EPS down 83.7%, Q/Q EPS down 66.7%
Insider selling activity (4 transactions, $1.17M) over the last 6 months indicates potential lack of confidence
Forward P/E of 22.78 is high relative to current P/E of 8.96, suggesting market expects future growth that may not materialize
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ACAD vs MRK: Head-to-Head Comparison

This page compares ACADIA Pharmaceuticals Inc. (ACAD) and Merck & Co., Inc. (MRK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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