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GSK vs MRK

GSK
GSK plc
BULLISH
Price
$54.22
Market Cap
$108.22B
Sector
Healthcare
AI Confidence
75%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
GSK
14.42
MRK
16.66
Forward P/E
GSK
10.5
MRK
12.42
P/B Ratio
GSK
4.89
MRK
5.7
P/S Ratio
GSK
3.31
MRK
4.61
EV/EBITDA
GSK
20.42
MRK
11.46

Profitability

Gross Margin
GSK
72.61%
MRK
77.21%
Operating Margin
GSK
18.93%
MRK
32.77%
Profit Margin
GSK
17.5%
MRK
28.08%
ROE
GSK
43.31%
MRK
36.88%
ROA
GSK
9.79%
MRK
12.04%

Growth

Revenue Growth
GSK
6.2%
MRK
5.0%
Earnings Growth
GSK
54.7%
MRK
-19.3%

Financial Health

Debt/Equity
GSK
1.11
MRK
0.96
Current Ratio
GSK
0.82
MRK
1.54
Quick Ratio
GSK
0.5
MRK
0.96

Dividends

Dividend Yield
GSK
3.27%
MRK
2.83%
Payout Ratio
GSK
46.54%
MRK
45.05%

AI Verdict

GSK BULLISH

GSK presents a compelling value proposition characterized by a Piotroski F-Score of 4/9 (Stable) and a significant disconnect between its current price ($54.22) and its growth-based intrinsic value ($110.92). While short-term liquidity is a concern with a Current Ratio of 0.82, the company's operational efficiency is exceptional, evidenced by an ROE of 43.31% and a very low PEG ratio of 0.50. A long-term track record of earnings beats suggests strong management execution. However, the bearish technical trend (0/100) indicates that the market has not yet priced in these fundamental strengths.

Strengths
Exceptional Return on Equity (ROE) of 43.31%
Strong earnings growth with YoY EPS increase of 54.70%
Highly attractive PEG ratio of 0.50, suggesting significant undervaluation relative to growth
Risks
Weak short-term liquidity (Current Ratio 0.82, Quick Ratio 0.50)
Bearish technical trend (0/100) indicating negative price momentum
Moderate Piotroski F-Score (4/9) suggesting stable but not optimal financial health
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

GSK vs MRK: Head-to-Head Comparison

This page compares GSK plc (GSK) 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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