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ARWR vs MRK

ARWR
Arrowhead Pharmaceuticals, Inc.
BULLISH
Price
$55.05
Market Cap
$7.71B
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
ARWR
34.41
MRK
16.66
Forward P/E
ARWR
-12.81
MRK
12.42
P/B Ratio
ARWR
13.31
MRK
5.7
P/S Ratio
ARWR
7.07
MRK
4.61
EV/EBITDA
ARWR
22.99
MRK
11.46

Profitability

Gross Margin
ARWR
100.0%
MRK
77.21%
Operating Margin
ARWR
15.46%
MRK
32.77%
Profit Margin
ARWR
18.54%
MRK
28.08%
ROE
ARWR
75.5%
MRK
36.88%
ROA
ARWR
14.35%
MRK
12.04%

Growth

Revenue Growth
ARWR
10461.3%
MRK
5.0%
Earnings Growth
ARWR
--
MRK
-19.3%

Financial Health

Debt/Equity
ARWR
1.24
MRK
0.96
Current Ratio
ARWR
3.38
MRK
1.54
Quick Ratio
ARWR
3.26
MRK
0.96

Dividends

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

AI Verdict

ARWR BULLISH

ARWR's Piotroski F-Score of 4/9 indicates weak financial health, with a notable debt/equity ratio of 1.24 and a lack of Altman Z-Score data, raising concerns about long-term solvency. However, the company exhibits exceptional profitability with a 75.5% ROE and 100% gross margin, supported by a staggering 10,461% YoY revenue growth. Despite a high current price of $55.05 and elevated valuation multiples (P/E: 34.41, P/S: 7.07), the stock trades at a premium due to explosive growth expectations. Analysts maintain a 'buy' consensus with a target price of $81.36, reflecting strong conviction in future upside. Insider selling activity, while bearish in sentiment, may reflect liquidity events rather than fundamental concerns.

Strengths
Exceptional 10,461% YoY revenue growth, indicating strong market traction
Outstanding 75.5% ROE and 18.54% profit margin, signaling high operational efficiency
100% gross margin suggests high-margin product portfolio or one-time revenue recognition
Risks
Piotroski F-Score of 4/9 indicates weak financial health and potential instability
Debt/Equity ratio of 1.24 is elevated for a biotech firm, increasing financial leverage risk
No Altman Z-Score available; lack of bankruptcy risk assessment is a major red flag
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

ARWR vs MRK: Head-to-Head Comparison

This page compares Arrowhead Pharmaceuticals, Inc. (ARWR) 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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