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AVNS vs MRK

AVNS
Avanos Medical, Inc.
BEARISH
Price
$13.09
Market Cap
$607.6M
Sector
Healthcare
AI Confidence
68%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
AVNS
--
MRK
16.66
Forward P/E
AVNS
13.78
MRK
12.42
P/B Ratio
AVNS
0.78
MRK
5.7
P/S Ratio
AVNS
0.87
MRK
4.61
EV/EBITDA
AVNS
9.0
MRK
11.46

Profitability

Gross Margin
AVNS
52.28%
MRK
77.21%
Operating Margin
AVNS
0.28%
MRK
32.77%
Profit Margin
AVNS
-67.0%
MRK
28.08%
ROE
AVNS
-46.68%
MRK
36.88%
ROA
AVNS
1.58%
MRK
12.04%

Growth

Revenue Growth
AVNS
4.3%
MRK
5.0%
Earnings Growth
AVNS
--
MRK
-19.3%

Financial Health

Debt/Equity
AVNS
0.17
MRK
0.96
Current Ratio
AVNS
2.38
MRK
1.54
Quick Ratio
AVNS
1.23
MRK
0.96

Dividends

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

AI Verdict

AVNS BEARISH

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of just 2/9, indicating significant operational and profitability concerns. Despite a low Price/Book and Price/Sales ratio suggesting potential value, the company is unprofitable with a -67% profit margin and negative ROE of -46.68%, undermining valuation appeal. While revenue growth is positive at 4.3% YoY and recent earnings surprises have been strong, the lack of sustained profitability, deteriorating insider sentiment, and poor long-term price performance (-72.6% over 5 years) raise serious concerns. The absence of Altman Z-Score and key financial data limits confidence, but current signals point to a distressed or speculative investment.

Strengths
Revenue growth of 4.3% YoY shows top-line resilience in a challenging sector environment
Gross margin of 52.28% indicates strong pricing power and cost control at the production level
Low valuation multiples: P/B of 0.78 and P/S of 0.87 suggest potential undervaluation relative to book and sales
Risks
Piotroski F-Score of 2/9 signals severe financial weakness, particularly in profitability and leverage metrics
Profit margin of -67% and ROE of -46.68% indicate deep unprofitability and inefficient use of equity
Missing Altman Z-Score prevents definitive distress assessment, but negative earnings and ROE imply high bankruptcy risk
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

AVNS vs MRK: Head-to-Head Comparison

This page compares Avanos Medical, Inc. (AVNS) 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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