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AVTR vs MRK

AVTR
Avantor, Inc.
BEARISH
Price
$11.80
Market Cap
$8.05B
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
AVTR
--
MRK
16.66
Forward P/E
AVTR
12.97
MRK
12.42
P/B Ratio
AVTR
1.44
MRK
5.7
P/S Ratio
AVTR
1.22
MRK
4.61
EV/EBITDA
AVTR
10.78
MRK
11.46

Profitability

Gross Margin
AVTR
33.13%
MRK
77.21%
Operating Margin
AVTR
8.48%
MRK
32.77%
Profit Margin
AVTR
-1.25%
MRK
28.08%
ROE
AVTR
-1.48%
MRK
36.88%
ROA
AVTR
3.43%
MRK
12.04%

Growth

Revenue Growth
AVTR
-5.3%
MRK
5.0%
Earnings Growth
AVTR
--
MRK
-19.3%

Financial Health

Debt/Equity
AVTR
0.69
MRK
0.96
Current Ratio
AVTR
1.49
MRK
1.54
Quick Ratio
AVTR
0.88
MRK
0.96

Dividends

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

AI Verdict

AVTR BEARISH

The Advanced Deterministic Scorecard reveals significant financial weakness with a Piotroski F-Score of just 2/9, indicating poor profitability, deteriorating margins, and weak operating performance. Despite a reasonable Debt/Equity ratio and positive operating cash flow proxies, the company is unprofitable on a net basis (negative net margin and ROE), with declining revenue and earnings. Insider selling, a bearish technical trend, and a sharp multi-year price decline further reinforce deterioration in fundamentals. Although the forward P/E of 12.97 appears low, weak execution, shrinking profits, and lack of intrinsic value benchmarks suggest the market is pricing in continued challenges.

Strengths
Forward P/E of 12.97 suggests potential undervaluation relative to sector average P/E of 202.93
Operating margin remains healthy at 8.48%, indicating pricing power or cost control at operational level
Debt/Equity ratio of 0.69 is below sector average of 2.31, suggesting conservative capital structure
Risks
Piotroski F-Score of 2/9 signals severe financial distress and high risk of continued underperformance
Negative net profit margin (-1.25%) and negative ROE (-1.48%) indicate systemic profitability issues
Revenue declining YoY by 5.30% and EPS down 15.4% YoY point to deteriorating fundamentals
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

AVTR vs MRK: Head-to-Head Comparison

This page compares Avantor, Inc. (AVTR) 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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