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MRK vs OM

MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%
OM
Outset Medical, Inc.
BEARISH
Price
$4.35
Market Cap
$79.7M
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
MRK
16.66
OM
--
Forward P/E
MRK
12.42
OM
-1.83
P/B Ratio
MRK
5.7
OM
0.62
P/S Ratio
MRK
4.61
OM
0.67
EV/EBITDA
MRK
11.46
OM
-0.19

Profitability

Gross Margin
MRK
77.21%
OM
39.13%
Operating Margin
MRK
32.77%
OM
-61.06%
Profit Margin
MRK
28.08%
OM
-68.34%
ROE
MRK
36.88%
OM
-106.2%
ROA
MRK
12.04%
OM
-15.43%

Growth

Revenue Growth
MRK
5.0%
OM
-2.0%
Earnings Growth
MRK
-19.3%
OM
--

Financial Health

Debt/Equity
MRK
0.96
OM
0.8
Current Ratio
MRK
1.54
OM
6.67
Quick Ratio
MRK
0.96
OM
5.24

Dividends

Dividend Yield
MRK
2.83%
OM
--
Payout Ratio
MRK
45.05%
OM
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)
OM BEARISH

Outset Medical exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9, indicating fundamental weakness across almost all health metrics. Despite a strong current ratio of 6.67 suggesting short-term liquidity, the company suffers from catastrophic long-term price erosion (-99.5% over 5 years) and negative revenue growth. The combination of deep negative profit margins (-68.34%) and consistent insider selling suggests a lack of confidence in a turnaround. While analysts maintain a 'buy' rating with a $9.00 target, the deterministic data points to a high risk of further capital impairment.

Strengths
Strong short-term liquidity with a Current Ratio of 6.67
Low Price-to-Book ratio (0.62) suggesting the stock trades below liquidation value
Low Price-to-Sales ratio (0.67) relative to healthcare sector averages
Risks
Severe fundamental weakness indicated by a Piotroski F-Score of 1/9
Negative revenue growth (-2.00% YoY) indicating a lack of market traction
Extreme profitability deficit with a Profit Margin of -68.34%

Compare Another Pair

MRK vs OM: Head-to-Head Comparison

This page compares Merck & Co., Inc. (MRK) and Outset Medical, Inc. (OM) 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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