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ACB vs MRK

ACB
Aurora Cannabis Inc.
BEARISH
Price
$3.43
Market Cap
$194.5M
Sector
Healthcare
AI Confidence
85%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ACB
--
MRK
16.66
Forward P/E
ACB
-31.18
MRK
12.42
P/B Ratio
ACB
0.49
MRK
5.7
P/S Ratio
ACB
0.52
MRK
4.61
EV/EBITDA
ACB
-6.68
MRK
11.46

Profitability

Gross Margin
ACB
36.03%
MRK
77.21%
Operating Margin
ACB
2.32%
MRK
32.77%
Profit Margin
ACB
-22.51%
MRK
28.08%
ROE
ACB
-15.51%
MRK
36.88%
ROA
ACB
-4.36%
MRK
12.04%

Growth

Revenue Growth
ACB
6.8%
MRK
5.0%
Earnings Growth
ACB
-94.7%
MRK
-19.3%

Financial Health

Debt/Equity
ACB
0.18
MRK
0.96
Current Ratio
ACB
3.06
MRK
1.54
Quick Ratio
ACB
1.05
MRK
0.96

Dividends

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

AI Verdict

ACB BEARISH

Aurora Cannabis Inc. (ACB) exhibits severe financial distress signals, underscored by a Piotroski F-Score of 1/9—indicating extreme weakness in operational and financial health. The absence of an Altman Z-Score and persistent negative profitability metrics (ROE: -15.51%, ROA: -4.36%) suggest high bankruptcy risk, especially given the company's negative earnings and declining cash flow. Despite a low price-to-book (0.49) and price-to-sales (0.52), the stock trades at a significant discount due to deteriorating fundamentals and a 96.9% 5-year decline. The lack of analyst coverage and neutral insider activity further erode confidence in near-term recovery.

Strengths
Low price-to-book ratio (0.49) suggests potential undervaluation on a balance sheet basis
Strong gross margin (36.03%) indicates efficient production and cost control
High current ratio (3.06) reflects strong short-term liquidity
Risks
Piotroski F-Score of 1/9 indicates severe financial distress and poor operational performance
Negative ROE (-15.51%) and ROA (-4.36%) reflect persistent unprofitability
Earnings growth has collapsed by -94.70% YoY, with a -93.60% Q/Q decline
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

ACB vs MRK: Head-to-Head Comparison

This page compares Aurora Cannabis Inc. (ACB) 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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