AstraZeneca PLC (AZN) vs Merck & Co., Inc. (MRK)

AstraZeneca PLC and Merck & Co., Inc. are both Drug Manufacturers General companies. Merck & Co., Inc. is the larger, with a market value of $362.5B against $289.8B — 1.3× the size. AstraZeneca PLC trades at the lower P/E: 26.3× against 118×. AstraZeneca PLC grew revenue faster over the last twelve months: 7.32% against 4.89%. AstraZeneca PLC has the higher net margin (17.7% vs 3.64%) and the higher return on invested capital (12.3% vs 0.00%). Both pay a dividend; Merck & Co., Inc. yields more (2.31% vs 1.71%). Across the 23 metrics below, AstraZeneca PLC leads on 19 and Merck & Co., Inc. on 4.

Valuation

Metric AZN MRK Drug Manufacturers General median
P/E 26.33 117.54 26.57
P/S 4.65 5.39 3.49
P/B 5.60 8.64 5.20
Price to free cash flow 45.85 22.59 21.34
EV/EBITDA 14.80 29.70 14.80
EV/Sales 5.03 6.04 4.09
Earnings yield 3.80% 0.85% 2.40%
Free cash flow yield 2.18% 4.43% 4.43%

Profitability

Metric AZN MRK Drug Manufacturers General median
Gross margin 81.94% 71.75% 73.01%
Operating margin 23.68% 9.20% 18.34%
Net margin 17.68% 3.64% 7.31%
Free cash flow margin 10.15% 0.00% 18.52%
Return on equity 22.56% 0.00% 5.80%
Return on assets 9.41% 0.00% 2.28%
Return on invested capital 12.31% 0.00% 6.26%

Growth

Metric AZN MRK Drug Manufacturers General median
Revenue growth (TTM) 7.32% 4.89% 6.72%
EPS growth (last fiscal year) 45.44% 8.01% 21.81%
Revenue growth, 5-year CAGR 17.15% 9.38% 4.75%
Net income growth, 5-year CAGR 26.19% 20.90% 0.00%

Health

Metric AZN MRK Drug Manufacturers General median
Debt to equity 0.61 1.22 0.63
Current ratio 1.01 1.32 1.39
Net debt to EBITDA 1.13 1.15 1.15

Dividend

Metric AZN MRK Drug Manufacturers General median
Dividend yield 1.71% 2.31% 2.31%
Payout ratio 0.45 3.49 0.59

Size

Metric AZN MRK Drug Manufacturers General median
Market cap 289.79b 362.53b 131.21b

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