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BLCO vs MRK

BLCO
Bausch + Lomb Corporation
BEARISH
Price
$16.98
Market Cap
$6.01B
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
BLCO
--
MRK
16.66
Forward P/E
BLCO
21.5
MRK
12.42
P/B Ratio
BLCO
0.94
MRK
5.7
P/S Ratio
BLCO
1.21
MRK
4.61
EV/EBITDA
BLCO
19.71
MRK
11.46

Profitability

Gross Margin
BLCO
59.45%
MRK
77.21%
Operating Margin
BLCO
6.25%
MRK
32.77%
Profit Margin
BLCO
-6.13%
MRK
28.08%
ROE
BLCO
-4.5%
MRK
36.88%
ROA
BLCO
0.53%
MRK
12.04%

Growth

Revenue Growth
BLCO
7.1%
MRK
5.0%
Earnings Growth
BLCO
--
MRK
-19.3%

Financial Health

Debt/Equity
BLCO
0.76
MRK
0.96
Current Ratio
BLCO
1.51
MRK
1.54
Quick Ratio
BLCO
0.74
MRK
0.96

Dividends

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

AI Verdict

BLCO BEARISH

The Advanced Deterministic Scorecard reveals severe financial health concerns with a Piotroski F-Score of just 2/9, indicating weak operational and balance sheet performance. Despite a reasonable Price/Book of 0.94 and a Debt/Equity ratio of 0.76, the company is unprofitable with a negative ROE of -4.50% and a profit margin of -6.13%. Earnings have collapsed year-over-year (-147.1%) and the last four quarters missed estimates by an average of -154.31%, signaling deteriorating fundamentals. While revenue growth of 7.10% and a gross margin above 59% provide some operational strength, the persistent earnings deterioration and lack of profitability undermine valuation support.

Strengths
Revenue growth of 7.10% YoY indicates top-line resilience in the medical instruments sector
Strong gross margin of 59.45% reflects pricing power and cost control in core operations
Debt/Equity ratio of 0.76 is below sector average of 2.69, suggesting conservative leverage
Risks
Piotroski F-Score of 2/9 signals severe financial distress and weak profitability trends
Negative ROE (-4.50%) and negative profit margin (-6.13%) indicate ongoing unprofitability
Earnings have collapsed with YoY EPS growth of -147.1% and Q/Q decline of -214.3%
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

BLCO vs MRK: Head-to-Head Comparison

This page compares Bausch + Lomb Corporation (BLCO) 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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