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MRK vs NEOG

MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%
NEOG
Neogen Corporation
NEUTRAL
Price
$9.61
Market Cap
$2.09B
Sector
Healthcare
AI Confidence
80%

Valuation

P/E Ratio
MRK
16.66
NEOG
--
Forward P/E
MRK
12.42
NEOG
32.76
P/B Ratio
MRK
5.7
NEOG
0.99
P/S Ratio
MRK
4.61
NEOG
2.4
EV/EBITDA
MRK
11.46
NEOG
33.56

Profitability

Gross Margin
MRK
77.21%
NEOG
45.21%
Operating Margin
MRK
32.77%
NEOG
-1.56%
Profit Margin
MRK
28.08%
NEOG
-69.94%
ROE
MRK
36.88%
NEOG
-25.57%
ROA
MRK
12.04%
NEOG
-0.61%

Growth

Revenue Growth
MRK
5.0%
NEOG
-4.4%
Earnings Growth
MRK
-19.3%
NEOG
--

Financial Health

Debt/Equity
MRK
0.96
NEOG
0.38
Current Ratio
MRK
1.54
NEOG
3.92
Quick Ratio
MRK
0.96
NEOG
1.97

Dividends

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

AI Verdict

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)
NEOG NEUTRAL

NEOG presents a stark contrast between a deteriorating income statement and a robust balance sheet. The Piotroski F-Score of 2/9 indicates significant fundamental weakness and poor operational trends, further evidenced by a -69.94% profit margin and declining revenue. However, the company maintains a strong liquidity position with a current ratio of 3.92 and low leverage (Debt/Equity 0.38), and the stock is currently trading at book value (P/B 0.99). While recent price momentum is bullish, the lack of earnings growth suggests this is a speculative turnaround play rather than a value investment.

Strengths
Strong liquidity with a current ratio of 3.92
Low leverage with a Debt/Equity ratio of 0.38
Healthy gross margins at 45.21%
Risks
Severe negative profit margins (-69.94%)
Negative revenue growth (-4.40% YoY)
Very weak Piotroski F-Score (2/9) indicating operational decline

Compare Another Pair

MRK vs NEOG: Head-to-Head Comparison

This page compares Merck & Co., Inc. (MRK) and Neogen Corporation (NEOG) 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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