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MESO vs MRK

MESO
Mesoblast Limited
BEARISH
Price
$14.70
Market Cap
$1.92B
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
MESO
--
MRK
16.66
Forward P/E
MESO
-210.0
MRK
12.42
P/B Ratio
MESO
32.96
MRK
5.7
P/S Ratio
MESO
29.42
MRK
4.61
EV/EBITDA
MESO
-294.48
MRK
11.46

Profitability

Gross Margin
MESO
-35.53%
MRK
77.21%
Operating Margin
MESO
-55.16%
MRK
32.77%
Profit Margin
MESO
-144.33%
MRK
28.08%
ROE
MESO
-18.22%
MRK
36.88%
ROA
MESO
-6.16%
MRK
12.04%

Growth

Revenue Growth
MESO
1526.8%
MRK
5.0%
Earnings Growth
MESO
--
MRK
-19.3%

Financial Health

Debt/Equity
MESO
0.24
MRK
0.96
Current Ratio
MESO
1.58
MRK
1.54
Quick Ratio
MESO
1.35
MRK
0.96

Dividends

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

AI Verdict

MESO BEARISH

MESO presents a high-risk profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a complete absence of deterministic value markers like the Graham Number. While revenue growth is explosive (1526.8%), the company suffers from a catastrophic negative gross margin of -35.53%, meaning it loses money on its core product delivery. The valuation is extreme, with a Price-to-Book ratio of 32.96 and a Price-to-Sales ratio of 29.42, indicating the stock is priced for perfection despite consistent quarterly losses over several years.

Strengths
Explosive year-over-year revenue growth of 1526.80%
Low Debt-to-Equity ratio (0.24) indicating minimal leverage
Healthy short-term liquidity with a Current Ratio of 1.58
Risks
Negative Gross Margin (-35.53%) indicates a fundamentally flawed cost structure
Extreme valuation multiples (P/B 32.96, P/S 29.42) far exceeding industry norms
Chronic lack of profitability with negative earnings across 25 consecutive 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

MESO vs MRK: Head-to-Head Comparison

This page compares Mesoblast Limited (MESO) 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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