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INVA vs MRK

INVA
Innoviva, Inc.
BULLISH
Price
$23.76
Market Cap
$1.77B
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
INVA
7.2
MRK
16.66
Forward P/E
INVA
10.75
MRK
12.42
P/B Ratio
INVA
1.51
MRK
5.7
P/S Ratio
INVA
4.31
MRK
4.61
EV/EBITDA
INVA
7.82
MRK
11.46

Profitability

Gross Margin
INVA
74.94%
MRK
77.21%
Operating Margin
INVA
34.66%
MRK
32.77%
Profit Margin
INVA
65.92%
MRK
28.08%
ROE
INVA
29.09%
MRK
36.88%
ROA
INVA
7.18%
MRK
12.04%

Growth

Revenue Growth
INVA
24.8%
MRK
5.0%
Earnings Growth
INVA
590.4%
MRK
-19.3%

Financial Health

Debt/Equity
INVA
0.28
MRK
0.96
Current Ratio
INVA
14.64
MRK
1.54
Quick Ratio
INVA
13.28
MRK
0.96

Dividends

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

AI Verdict

INVA BULLISH

Innoviva exhibits a stark divergence between operational health trends and valuation; while the Piotroski F-Score of 3/9 indicates weak financial health trends, the company is fundamentally undervalued with a current price of $23.76 sitting well below both the Graham Number ($34.16) and the Intrinsic Value ($97.35). The company boasts exceptional profitability with a 65.92% profit margin and a PEG ratio of 0.35, suggesting massive growth potential relative to its current multiple. Despite a heavily bearish technical trend (10/100), the extreme liquidity (Current Ratio 14.64) and low debt/equity (0.28) mitigate immediate solvency risks. The bullish thesis is driven by deep value and explosive earnings growth, though the low F-Score warrants caution regarding operational efficiency.

Strengths
Exceptional profitability with 65.92% profit margins
Deep value valuation (P/E 7.20, PEG 0.35)
Extreme short-term liquidity with a Current Ratio of 14.64
Risks
Weak operational health trends as indicated by Piotroski F-Score (3/9)
Strongly bearish technical momentum (10/100)
High volatility in quarterly earnings surprises
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

INVA vs MRK: Head-to-Head Comparison

This page compares Innoviva, Inc. (INVA) 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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