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MRK vs SLP

MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%
SLP
Simulations Plus, Inc.
BEARISH
Price
$14.37
Market Cap
$290.4M
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
MRK
16.66
SLP
--
Forward P/E
MRK
12.42
SLP
15.59
P/B Ratio
MRK
5.7
SLP
2.17
P/S Ratio
MRK
4.61
SLP
3.61
EV/EBITDA
MRK
11.46
SLP
17.84

Profitability

Gross Margin
MRK
77.21%
SLP
61.97%
Operating Margin
MRK
32.77%
SLP
23.18%
Profit Margin
MRK
28.08%
SLP
-77.96%
ROE
MRK
36.88%
SLP
-38.84%
ROA
MRK
12.04%
SLP
3.81%

Growth

Revenue Growth
MRK
5.0%
SLP
8.3%
Earnings Growth
MRK
-19.3%
SLP
46.7%

Financial Health

Debt/Equity
MRK
0.96
SLP
0.0
Current Ratio
MRK
1.54
SLP
5.47
Quick Ratio
MRK
0.96
SLP
5.26

Dividends

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

Simulations Plus (SLP) exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating a deteriorating financial trend. While the company maintains an exceptionally clean balance sheet with zero debt and high liquidity (Current Ratio 5.47), this is offset by a disastrous profit margin of -77.96% and a long-term price collapse of -76.6% over five years. The valuation is problematic, with a PEG ratio of 9.88 suggesting the stock is significantly overvalued relative to its growth. Despite optimistic analyst price targets, the deterministic data and bearish insider sentiment point to continued instability.

Strengths
Zero debt (Debt/Equity: 0.00)
Excellent liquidity (Current Ratio: 5.47)
Strong Gross Margins (61.97%)
Risks
Very weak Piotroski F-Score (2/9) indicating poor financial health trends
Extreme negative net profit margin (-77.96%)
Highly overvalued relative to growth (PEG Ratio: 9.88)

Compare Another Pair

MRK vs SLP: Head-to-Head Comparison

This page compares Merck & Co., Inc. (MRK) and Simulations Plus, Inc. (SLP) 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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