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MRK vs TMO

MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%
TMO
Thermo Fisher Scientific Inc.
NEUTRAL
Price
$513.98
Market Cap
$191.01B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
MRK
16.66
TMO
28.99
Forward P/E
MRK
12.42
TMO
18.94
P/B Ratio
MRK
5.7
TMO
3.62
P/S Ratio
MRK
4.61
TMO
4.29
EV/EBITDA
MRK
11.46
TMO
19.96

Profitability

Gross Margin
MRK
77.21%
TMO
41.08%
Operating Margin
MRK
32.77%
TMO
21.17%
Profit Margin
MRK
28.08%
TMO
15.05%
ROE
MRK
36.88%
TMO
13.02%
ROA
MRK
12.04%
TMO
5.03%

Growth

Revenue Growth
MRK
5.0%
TMO
7.2%
Earnings Growth
MRK
-19.3%
TMO
9.3%

Financial Health

Debt/Equity
MRK
0.96
TMO
0.77
Current Ratio
MRK
1.54
TMO
1.89
Quick Ratio
MRK
0.96
TMO
1.36

Dividends

Dividend Yield
MRK
2.83%
TMO
0.34%
Payout Ratio
MRK
45.05%
TMO
9.7%

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)
TMO NEUTRAL

TMO exhibits exceptional operational health with a Piotroski F-Score of 8/9, indicating strong financial stability and efficiency. However, the stock is currently trading at a significant premium, with a current price of $513.98 far exceeding both the Graham Number ($237.97) and the growth-based Intrinsic Value ($371.44). While analyst sentiment remains strongly bullish with a target of $647.38, this is countered by bearish insider activity and a negative technical trend. The outlook is balanced between high-quality fundamentals and a stretched valuation.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 8/9
Consistent track record of earnings beats over 25 quarters
Healthy liquidity with a current ratio of 1.89 and quick ratio of 1.36
Risks
Significant valuation gap between current price and deterministic fair value models
Bearish insider sentiment with over $56M in sales by the CEO and COO
Negative technical trend (0/100) indicating short-term price weakness

Compare Another Pair

MRK vs TMO: Head-to-Head Comparison

This page compares Merck & Co., Inc. (MRK) and Thermo Fisher Scientific Inc. (TMO) 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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