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ALKS vs MRK

ALKS
Alkermes plc
BEARISH
Price
$27.76
Market Cap
$4.63B
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
ALKS
19.41
MRK
16.66
Forward P/E
ALKS
13.4
MRK
12.42
P/B Ratio
ALKS
2.53
MRK
5.7
P/S Ratio
ALKS
3.13
MRK
4.61
EV/EBITDA
ALKS
14.61
MRK
11.46

Profitability

Gross Margin
ALKS
86.69%
MRK
77.21%
Operating Margin
ALKS
15.11%
MRK
32.77%
Profit Margin
ALKS
16.37%
MRK
28.08%
ROE
ALKS
14.72%
MRK
36.88%
ROA
ALKS
6.99%
MRK
12.04%

Growth

Revenue Growth
ALKS
-10.6%
MRK
5.0%
Earnings Growth
ALKS
-67.0%
MRK
-19.3%

Financial Health

Debt/Equity
ALKS
0.04
MRK
0.96
Current Ratio
ALKS
3.55
MRK
1.54
Quick Ratio
ALKS
1.7
MRK
0.96

Dividends

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

AI Verdict

ALKS BEARISH

ALKS exhibits a weak Piotroski F-Score of 4/9, indicating marginal financial health, and lacks an Altman Z-Score, raising concerns about default risk. Despite a strong Graham Number of $18.80 and intrinsic value estimate of $10.01, the current price of $27.76 trades at a significant premium, especially given deteriorating growth and profitability metrics. The company shows a sharp decline in revenue and earnings (YoY: -10.6% and -67.0%), with recent quarterly earnings missing expectations and negative Q/Q trends. Insider selling activity over the past six months further undermines confidence, despite strong historical earnings surprises. The market appears to be pricing in future recovery, but current fundamentals suggest caution.

Strengths
Strong gross margin of 86.69% indicates high product pricing power and cost control
Exceptionally low debt/equity ratio of 0.04 reflects conservative capital structure and strong financial stability
High current ratio (3.55) and quick ratio (1.70) signal robust short-term liquidity
Risks
Piotroski F-Score of 4/9 indicates weak financial health, with only marginal stability
Significant year-over-year earnings and revenue decline (-67.0% and -10.6%) suggest deteriorating business momentum
Recent insider selling activity (4 transactions, $0.77M value) signals potential internal skepticism
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

ALKS vs MRK: Head-to-Head Comparison

This page compares Alkermes plc (ALKS) 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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