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MASI vs MRK

MASI
Masimo Corporation
BEARISH
Price
$178.47
Market Cap
$9.35B
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
MASI
46.6
MRK
16.66
Forward P/E
MASI
27.04
MRK
12.42
P/B Ratio
MASI
12.89
MRK
5.7
P/S Ratio
MASI
6.12
MRK
4.61
EV/EBITDA
MASI
28.16
MRK
11.46

Profitability

Gross Margin
MASI
61.8%
MRK
77.21%
Operating Margin
MASI
18.52%
MRK
32.77%
Profit Margin
MASI
-9.92%
MRK
28.08%
ROE
MASI
23.43%
MRK
36.88%
ROA
MASI
8.86%
MRK
12.04%

Growth

Revenue Growth
MASI
12.0%
MRK
5.0%
Earnings Growth
MASI
--
MRK
-19.3%

Financial Health

Debt/Equity
MASI
0.78
MRK
0.96
Current Ratio
MASI
2.49
MRK
1.54
Quick Ratio
MASI
1.29
MRK
0.96

Dividends

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

AI Verdict

MASI BEARISH

MASI exhibits a severe valuation disconnect, trading at $178.47 despite a Graham Number of $34.54 and an Intrinsic Value of $26.81. While the Piotroski F-Score of 4/9 indicates stable financial health, the company is struggling with a negative profit margin (-9.92%) and a concerning Q/Q revenue collapse of -31.33%. Strong gross margins and ROE are offset by a significant YoY EPS decline of -31.7% and bearish insider sentiment. The stock is currently priced for perfection in a deteriorating short-term growth environment.

Strengths
Strong Gross Margin (61.80%) indicating high product value
Robust Return on Equity (ROE) of 23.43%
Healthy liquidity with a Current Ratio of 2.49
Risks
Extreme overvaluation relative to Graham and Intrinsic value models
Sharp Q/Q revenue contraction (-31.33%)
Significant YoY earnings decline (-31.7%)
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

MASI vs MRK: Head-to-Head Comparison

This page compares Masimo Corporation (MASI) 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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