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MRK vs SPRO

MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%
SPRO
Spero Therapeutics, Inc.
BEARISH
Price
$2.75
Market Cap
$159.2M
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
MRK
16.66
SPRO
18.33
Forward P/E
MRK
12.42
SPRO
-2.48
P/B Ratio
MRK
5.7
SPRO
2.63
P/S Ratio
MRK
4.61
SPRO
2.38
EV/EBITDA
MRK
11.46
SPRO
17.01

Profitability

Gross Margin
MRK
77.21%
SPRO
42.42%
Operating Margin
MRK
32.77%
SPRO
76.05%
Profit Margin
MRK
28.08%
SPRO
12.83%
ROE
MRK
36.88%
SPRO
16.3%
ROA
MRK
12.04%
SPRO
4.99%

Growth

Revenue Growth
MRK
5.0%
SPRO
174.5%
Earnings Growth
MRK
-19.3%
SPRO
--

Financial Health

Debt/Equity
MRK
0.96
SPRO
0.05
Current Ratio
MRK
1.54
SPRO
7.59
Quick Ratio
MRK
0.96
SPRO
7.4

Dividends

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

SPRO exhibits a critical divergence between its explosive revenue growth and its underlying financial health, evidenced by a weak Piotroski F-Score of 2/9. While the company maintains a strong current ratio (7.59) and low debt, the current price of $2.75 trades at a significant premium to both its Graham Number ($1.88) and Intrinsic Value ($1.05). This valuation gap, combined with aggressive insider selling by the CEO and COO and a bearish technical trend, suggests the recent 1-year price surge is unsustainable. The negative forward P/E further indicates an expectation of returning to losses despite recent revenue spikes.

Strengths
Exceptional YoY revenue growth of 174.50%
Very high liquidity with a current ratio of 7.59
Minimal leverage with a Debt/Equity ratio of 0.05
Risks
Severe financial health deterioration indicated by Piotroski F-Score (2/9)
Strong bearish insider signal with multiple sales by CEO and COO
Significant overvaluation relative to Graham and Intrinsic value baselines

Compare Another Pair

MRK vs SPRO: Head-to-Head Comparison

This page compares Merck & Co., Inc. (MRK) and Spero Therapeutics, Inc. (SPRO) 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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