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DHR vs MRK

DHR
Danaher Corporation
NEUTRAL
Price
$195.50
Market Cap
$138.36B
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
DHR
38.94
MRK
16.66
Forward P/E
DHR
21.49
MRK
12.42
P/B Ratio
DHR
2.63
MRK
5.7
P/S Ratio
DHR
5.63
MRK
4.61
EV/EBITDA
DHR
19.57
MRK
11.46

Profitability

Gross Margin
DHR
59.23%
MRK
77.21%
Operating Margin
DHR
22.17%
MRK
32.77%
Profit Margin
DHR
14.71%
MRK
28.08%
ROE
DHR
7.05%
MRK
36.88%
ROA
DHR
4.18%
MRK
12.04%

Growth

Revenue Growth
DHR
4.6%
MRK
5.0%
Earnings Growth
DHR
12.5%
MRK
-19.3%

Financial Health

Debt/Equity
DHR
0.37
MRK
0.96
Current Ratio
DHR
1.87
MRK
1.54
Quick Ratio
DHR
1.4
MRK
0.96

Dividends

Dividend Yield
DHR
0.82%
MRK
2.83%
Payout Ratio
DHR
25.45%
MRK
45.05%

AI Verdict

DHR NEUTRAL

Danaher Corporation presents a dichotomy between strong operational quality and poor valuation metrics. The deterministic baseline is weak, with a Piotroski F-Score of 4/9 (Stable) and a current price of $195.50 that significantly exceeds both the Graham Number ($91.62) and the Intrinsic Value ($129.26). While the balance sheet is exceptionally healthy with low debt/equity (0.37), the stock is trading at a steep premium. Despite a 'Strong Buy' analyst consensus and a high target price of $256.05, the bearish technical trend and insider selling suggest caution.

Strengths
Very low Debt/Equity ratio (0.37) indicating high financial solvency
Strong Gross Margins (59.23%) reflecting significant pricing power
Consistent long-term track record of earnings beats over 25 quarters
Risks
Significant overvaluation relative to Graham and Intrinsic value models
Bearish technical trend (0/100) and negative 6-month price performance
Slow organic revenue growth (4.60% YoY)
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

DHR vs MRK: Head-to-Head Comparison

This page compares Danaher Corporation (DHR) 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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