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LEGN vs MRK

LEGN
Legend Biotech Corporation
BEARISH
Price
$18.16
Market Cap
$3.36B
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
LEGN
--
MRK
16.66
Forward P/E
LEGN
15.79
MRK
12.42
P/B Ratio
LEGN
3.35
MRK
5.7
P/S Ratio
LEGN
3.26
MRK
4.61
EV/EBITDA
LEGN
-48.64
MRK
11.46

Profitability

Gross Margin
LEGN
20.03%
MRK
77.21%
Operating Margin
LEGN
-6.72%
MRK
32.77%
Profit Margin
LEGN
-28.85%
MRK
28.08%
ROE
LEGN
-29.06%
MRK
36.88%
ROA
LEGN
-5.01%
MRK
12.04%

Growth

Revenue Growth
LEGN
64.2%
MRK
5.0%
Earnings Growth
LEGN
--
MRK
-19.3%

Financial Health

Debt/Equity
LEGN
0.41
MRK
0.96
Current Ratio
LEGN
1.96
MRK
1.54
Quick Ratio
LEGN
1.88
MRK
0.96

Dividends

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

AI Verdict

LEGN BEARISH

LEGN exhibits severe financial instability as evidenced by a critical Piotroski F-Score of 1/9, indicating poor operational health. While the company shows impressive top-line revenue growth of 64.20%, this is offset by consistent earnings misses (average surprise of -66.26% over the last 4 quarters) and a devastating technical trend (0/100). There is a stark disconnect between the bullish analyst target of $57.22 and the actual price performance, which has declined over 41% in the last year. The stock currently behaves as a high-risk speculative asset with failing fundamental health markers.

Strengths
Strong YoY revenue growth of 64.20%
Low Debt/Equity ratio of 0.41
Healthy liquidity with a Current Ratio of 1.96
Risks
Critical Piotroski F-Score (1/9) indicating fundamental weakness
Severe technical breakdown with 0/100 trend score
Consistent failure to meet earnings estimates (1/4 beats in last 4 quarters)
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

LEGN vs MRK: Head-to-Head Comparison

This page compares Legend Biotech Corporation (LEGN) 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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