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LCTX vs MRK

LCTX
Lineage Cell Therapeutics, Inc.
BEARISH
Price
$1.56
Market Cap
$388.6M
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
LCTX
--
MRK
16.66
Forward P/E
LCTX
-20.13
MRK
12.42
P/B Ratio
LCTX
8.52
MRK
5.7
P/S Ratio
LCTX
26.7
MRK
4.61
EV/EBITDA
LCTX
-15.85
MRK
11.46

Profitability

Gross Margin
LCTX
-22.8%
MRK
77.21%
Operating Margin
LCTX
-99.09%
MRK
32.77%
Profit Margin
LCTX
0.0%
MRK
28.08%
ROE
LCTX
-105.3%
MRK
36.88%
ROA
LCTX
-12.06%
MRK
12.04%

Growth

Revenue Growth
LCTX
130.4%
MRK
5.0%
Earnings Growth
LCTX
--
MRK
-19.3%

Financial Health

Debt/Equity
LCTX
0.06
MRK
0.96
Current Ratio
LCTX
5.2
MRK
1.54
Quick Ratio
LCTX
5.04
MRK
0.96

Dividends

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

AI Verdict

LCTX BEARISH

LCTX exhibits severe financial distress as evidenced by a Piotroski F-Score of 1/9, indicating critical weakness across nearly all fundamental health dimensions. While the company maintains a strong liquidity position with a current ratio of 5.20 and low debt, it suffers from negative gross margins (-22.80%) and an unsustainable operating margin of -99.09%. The valuation is extreme, with a Price/Sales ratio of 26.70 and a PEG of 10.64, suggesting the stock is priced for perfection despite consistent earnings misses. The stark contrast between the 'Strong Buy' analyst consensus and the deterministic health scores suggests a speculative bet on clinical outcomes rather than a value-driven investment.

Strengths
Strong short-term liquidity with a current ratio of 5.20
Very low leverage with a Debt/Equity ratio of 0.06
Significant year-over-year revenue growth of 130.40%
Risks
Critical fundamental health (Piotroski F-Score 1/9)
Negative gross margins indicating a non-viable current cost structure
Extreme valuation multiples (P/S 26.70, P/B 8.52)
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

LCTX vs MRK: Head-to-Head Comparison

This page compares Lineage Cell Therapeutics, Inc. (LCTX) 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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