No connection

Search Results

EW vs MRK

EW
Edwards Lifesciences Corporation
NEUTRAL
Price
$86.30
Market Cap
$50.08B
Sector
Healthcare
AI Confidence
72%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
EW
37.85
MRK
16.66
Forward P/E
EW
35.22
MRK
12.42
P/B Ratio
EW
4.91
MRK
5.7
P/S Ratio
EW
8.51
MRK
4.61
EV/EBITDA
EW
26.28
MRK
11.46

Profitability

Gross Margin
EW
78.19%
MRK
77.21%
Operating Margin
EW
27.37%
MRK
32.77%
Profit Margin
EW
23.25%
MRK
28.08%
ROE
EW
13.49%
MRK
36.88%
ROA
EW
7.71%
MRK
12.04%

Growth

Revenue Growth
EW
14.7%
MRK
5.0%
Earnings Growth
EW
-90.3%
MRK
-19.3%

Financial Health

Debt/Equity
EW
0.07
MRK
0.96
Current Ratio
EW
4.0
MRK
1.54
Quick Ratio
EW
2.98
MRK
0.96

Dividends

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

AI Verdict

EW NEUTRAL

Edwards Lifesciences (EW) trades near its 52-week high at $86.30, reflecting strong recent price momentum (+30.4% 1Y, +18.3% 1M), supported by consistent revenue growth of 14.7% YoY and a solid track record of earnings beats over the past four quarters (avg. surprise: 9.24%). The company exhibits best-in-class profitability with a 78.2% gross margin and 27.4% operating margin, significantly above sector averages, while maintaining a fortress balance sheet with a Debt/Equity ratio of just 0.07 and a Current Ratio of 4.0. However, near-term earnings growth is deeply negative (-90.3% YoY), creating a dislocation between top-line strength and bottom-line performance, and insider selling worth $4.7M over the last six months raises caution. While analysts maintain a 'buy' recommendation with a $93.94 target implying 8.9% upside, valuation appears stretched relative to growth, particularly when compared to higher-growth peers like BNTX or capital-efficient leaders like ZTS.

Strengths
Revenue growth of 14.7% YoY significantly exceeds sector average of 10.24%
Exceptional profitability: 78.19% gross margin and 27.37% operating margin, both well above healthcare sector averages
Superior financial health with Debt/Equity of 0.07 vs. sector avg of 1.40 and Current Ratio of 4.0 indicating strong liquidity
Risks
Severe earnings contraction: YoY earnings growth down 90.3%, raising concerns about cost structure or one-time charges
High valuation metrics: P/E of 37.85 and Forward P/E of 35.22 appear stretched given negative earnings growth
Insider selling pressure: $4.7M in insider sales over last 6 months with no buys, including CFO and multiple officers
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

EW vs MRK: Head-to-Head Comparison

This page compares Edwards Lifesciences Corporation (EW) 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.

Home
Terminal
AI Chat
Markets
Profile