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ELAN vs MRK

ELAN
Elanco Animal Health Incorporated
NEUTRAL
Price
$22.75
Market Cap
$11.36B
Sector
Healthcare
AI Confidence
80%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ELAN
--
MRK
16.66
Forward P/E
ELAN
19.47
MRK
12.42
P/B Ratio
ELAN
1.73
MRK
5.7
P/S Ratio
ELAN
2.41
MRK
4.61
EV/EBITDA
ELAN
16.75
MRK
11.46

Profitability

Gross Margin
ELAN
55.0%
MRK
77.21%
Operating Margin
ELAN
2.27%
MRK
32.77%
Profit Margin
ELAN
-4.92%
MRK
28.08%
ROE
ELAN
-3.67%
MRK
36.88%
ROA
ELAN
1.25%
MRK
12.04%

Growth

Revenue Growth
ELAN
12.2%
MRK
5.0%
Earnings Growth
ELAN
--
MRK
-19.3%

Financial Health

Debt/Equity
ELAN
0.68
MRK
0.96
Current Ratio
ELAN
2.17
MRK
1.54
Quick Ratio
ELAN
1.0
MRK
0.96

Dividends

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

AI Verdict

ELAN NEUTRAL

ELAN exhibits a critical divergence between market sentiment and fundamental health, highlighted by a very weak Piotroski F-Score of 2/9. While the company has seen a massive 1-year price surge of 140.5% and maintains strong analyst support (Strong Buy), the underlying financials show negative profit margins and negative ROE. Revenue growth remains positive at 12.2%, and the company consistently beats earnings estimates, but the high PEG ratio of 3.83 suggests the stock is significantly overvalued relative to its actual growth. The outlook is neutral as the market bets on a turnaround that the current deterministic health scores do not yet support.

Strengths
Strong Gross Margin of 55.00%
Consistent track record of beating earnings estimates (3/4 last 4 quarters)
Positive YoY and Q/Q revenue growth (~12%)
Risks
Very weak Piotroski F-Score (2/9) indicating deteriorating financial health
Negative Profit Margin (-4.92%) and negative ROE (-3.67%)
High PEG Ratio (3.83) indicating overvaluation relative to growth
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

ELAN vs MRK: Head-to-Head Comparison

This page compares Elanco Animal Health Incorporated (ELAN) 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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