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ALVO vs MRK

ALVO
Alvotech
BEARISH
Price
$3.82
Market Cap
$1.19B
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
ALVO
16.61
MRK
16.66
Forward P/E
ALVO
13.2
MRK
12.42
P/B Ratio
ALVO
-6.49
MRK
5.7
P/S Ratio
ALVO
2.08
MRK
4.61
EV/EBITDA
ALVO
37.72
MRK
11.46

Profitability

Gross Margin
ALVO
55.59%
MRK
77.21%
Operating Margin
ALVO
-2.62%
MRK
32.77%
Profit Margin
ALVO
12.12%
MRK
28.08%
ROE
ALVO
--
MRK
36.88%
ROA
ALVO
1.98%
MRK
12.04%

Growth

Revenue Growth
ALVO
10.6%
MRK
5.0%
Earnings Growth
ALVO
--
MRK
-19.3%

Financial Health

Debt/Equity
ALVO
--
MRK
0.96
Current Ratio
ALVO
1.42
MRK
1.54
Quick Ratio
ALVO
0.54
MRK
0.96

Dividends

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

AI Verdict

ALVO BEARISH

ALVO's deterministic health scores signal significant distress: the Piotroski F-Score of 2/9 indicates weak financial health, with poor profitability, negative operating margins, and erratic earnings. The absence of an Altman Z-Score raises red flags for potential bankruptcy risk, especially given negative operating margins and a low quick ratio of 0.54. Despite a modest 10.6% YoY revenue growth and a 55.59% gross margin, the company exhibits severe earnings instability, with a -161.1% YoY EPS decline and multiple quarters of massive negative surprises. The stock trades at a premium to its intrinsic value of $1.61, suggesting overvaluation based on current fundamentals. Analysts' target price of $18.83 appears disconnected from current performance and financial health.

Strengths
55.59% gross margin indicates strong product-level pricing power and cost control
10.6% year-over-year revenue growth suggests ongoing market expansion
Positive surprise in Q2 2024 (6000%) shows potential for unexpected upside in earnings
Risks
Piotroski F-Score of 2/9 signals severe financial distress and weak operational efficiency
Negative operating margin (-2.62%) and inconsistent earnings undermine profitability sustainability
Massive negative earnings surprises (e.g., -1748.5% in Q1 2024) indicate unreliable financial reporting or operational instability
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

ALVO vs MRK: Head-to-Head Comparison

This page compares Alvotech (ALVO) 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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