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ISRG vs MRK

ISRG
Intuitive Surgical, Inc.
NEUTRAL
Price
$465.60
Market Cap
$165.37B
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
ISRG
59.16
MRK
16.66
Forward P/E
ISRG
40.75
MRK
12.42
P/B Ratio
ISRG
9.28
MRK
5.7
P/S Ratio
ISRG
16.43
MRK
4.61
EV/EBITDA
ISRG
44.88
MRK
11.46

Profitability

Gross Margin
ISRG
66.0%
MRK
77.21%
Operating Margin
ISRG
30.15%
MRK
32.77%
Profit Margin
ISRG
28.38%
MRK
28.08%
ROE
ISRG
16.69%
MRK
36.88%
ROA
ISRG
9.39%
MRK
12.04%

Growth

Revenue Growth
ISRG
18.8%
MRK
5.0%
Earnings Growth
ISRG
16.6%
MRK
-19.3%

Financial Health

Debt/Equity
ISRG
0.01
MRK
0.96
Current Ratio
ISRG
4.88
MRK
1.54
Quick Ratio
ISRG
3.77
MRK
0.96

Dividends

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

AI Verdict

ISRG NEUTRAL

ISRG exhibits a stable deterministic health profile with a Piotroski F-Score of 4/9 and an exceptionally strong balance sheet (Debt/Equity 0.01). While the company is a fundamental powerhouse with 66% gross margins and consistent earnings beats, it trades at a massive premium to its Graham Number ($94.28) and Intrinsic Value ($232.16). The disconnect between the high valuation (P/E 59.16) and the current price suggests the stock is priced for perfection, leaving little room for error despite strong 18.8% revenue growth.

Strengths
Near-zero debt profile (Debt/Equity 0.01) providing immense financial flexibility
Exceptional profitability with 66% gross margins and 28.38% profit margins
Consistent track record of earnings surprises (3/4 recent quarters beat estimates)
Risks
Extreme valuation premium (P/E 59.16, P/S 16.43) relative to historical norms
High PEG ratio (2.41) indicating the price is outstripping earnings growth
Bearish insider sentiment with 7 sell transactions and 0 buys in the last 6 months
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

ISRG vs MRK: Head-to-Head Comparison

This page compares Intuitive Surgical, Inc. (ISRG) 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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