We are increasing Merck's fair value estimate to $120 from $114 based on strong first-quarter results that ran ahead of our expectations combined with a pipeline that is progressing well.
Keytruda looks best positioned in the immuno-oncology landscape, buoyed by a first-mover advantage in the important indication of first-line non-small cell lung cancer.
Outside of immuno oncology, Merck needs to increase the number of late-stage pipeline drugs.
|
Metric
|
MRK
|
LLY
|
PFE
|
|---|---|---|---|
Price/Earnings (Normalized) | 84.66 | 87.27 | 14.28 |
Price/Book Value | 8.56 | 64.53 | 1.67 |
Price/Sales | 5.38 | 19.38 | 2.53 |
Price/Cash Flow | 21.27 | 90.66 | 13.63 |
|
Metric
|
MRK
|
LLY
|
PFE
|
|---|---|---|---|
Quick Ratio | 0.68 | 0.52 | 0.58 |
Current Ratio | 1.25 | 0.94 | 0.91 |
Interest Coverage | 2.33 | 14.13 | 0.74 |
|
Metric
|
MRK
|
LLY
|
PFE
|
|---|---|---|---|
Return on Assets (Normalized) | 3.59% | 10.22% | 4.98% |
Return on Equity (Normalized) | 9.12% | 52.03% | 10.90% |
Return on Invested Capital (Normalized) | 5.88% | 19.27% | 7.28% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
LLY
| Eli Lilly and Co | Mbfmrrpfjy | Zfg | $696.2 Bil | |
JNJ
| Johnson & Johnson | Jhcnrqrh | Qnplm | $357.9 Bil | |
ABBV
| AbbVie Inc | Vswwsfpt | Gwz | $297.3 Bil | |
AZN
| AstraZeneca PLC ADR | Dzdplmrxh | Wpn | $219.1 Bil | |
NVS
| Novartis AG ADR | Vgdmnvpm | Gpcj | $199.4 Bil | |
RHHBY
| Roche Holding AG ADR | Znttpvvgt | Rlwgy | $196.3 Bil | |
PFE
| Pfizer Inc | Xlghpql | Phtd | $148.7 Bil | |
AMGN
| Amgen Inc | Ktvymzjcgf | Dsw | $146.4 Bil | |
SNY
| Sanofi SA ADR | Ksdwlkdj | Fjrfh | $117.2 Bil |
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