` Comparison: RHO vs MRK - Alpha Spread

RHO
vs
MRK

Over the past 12 months, RHO has underperformed MRK, delivering a return of +4% compared to the MRK's +23% growth.

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RHO
MRK
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Valuation Comparison

RHO Intrinsic Value
317.15 EUR
Overvaluation 20%
Intrinsic Value
Price
MRK Intrinsic Value
113.59 USD
Overvaluation 2%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Roche Holding AG
F:RHO
395 EUR
Merck & Co Inc
NYSE:MRK
116.08 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
RHO, MRK

RHO
MRK
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Roche Holding AG
Revenue
Merck & Co Inc
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
RHO, MRK

RHO
MRK
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Roche Holding AG
F:RHO
Merck & Co Inc
NYSE:MRK
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What is Free Cash Flow?

Gross Margin

RHO
73.9%
MRK
81.5%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

Operating Margin

RHO
35%
MRK
41.2%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

Net Margin

RHO
20.9%
MRK
28.1%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

FCF Margin

RHO
17.7%
MRK
19%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

ROE

RHO
39.3%
MRK
36.9%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

ROA

RHO
12.7%
MRK
14.4%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

ROIC

RHO
19.4%
MRK
21.4%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

ROCE

RHO
29.2%
MRK
27.2%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Merck & Co Inc

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
RHO, MRK

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Performance Gap
RHO, MRK

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RHO
MRK
Difference
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Performance By Year
RHO, MRK

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RHO
MRK
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Compare RHO to other stocks
LLY
Eli Lilly and Co
More expensive
vs RHO
JNJ
Johnson & Johnson
More expensive
vs RHO
NOVN
Novartis AG
Cheaper
vs RHO
AMGN
Amgen Inc
Cheaper
vs RHO
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett