BMY or MRK?

**Bristol Myers Squibb (BMY) and Merck & Co., Inc. (MRK) are both prominent players in the pharmaceutical industry, but they differ significantly in terms of growth rate, earnings, and valuation metrics. Here's a comparison based on the provided data:

1. Growth Rate and Revenue:
   • Bristol Myers Squibb reported a revenue growth rate of 3% for the fourth quarter of 2023, with a full-year growth of 7%. The second-quarter growth was 9%, indicating a strong performance in the first half of the year.
   • Merck's pharmaceutical sales grew by 3% in the fourth quarter of 2023. The full-year 2023 growth was 1%, with significant contributions from oncology and vaccine sales.
2. Earnings and Profitability:
   • Bristol Myers Squibb's fourth-quarter earnings per share (EPS) were $0.87, and the full-year EPS was $3.86. The second-quarter EPS was $0.83.
   • Merck's fourth-quarter EPS was $0.48, and the full-year EPS was $2.95. The second-quarter EPS was $1.87.
3. Valuation Metrics:
   • Bristol Myers Squibb's P/E ratio as of July 2024, is 12.6, which is relatively low and suggests the stock may be undervalued compared to its earnings.
   • Merck's P/E ratio as of September 2024, is 21.34, indicating a higher valuation pressure compared to Bristol Myers Squibb.
4. Market Performance and Analyst Sentiments:
   • Bristol Myers Squibb has received a "market perform" rating from BMO Capital Markets, reflecting a neutral outlook.
   • Merck has a consensus rating of "Hold" with a price target suggesting a potential upside.
5. Innovation and Pipeline:
   • Bristol Myers Squibb has been strengthening its pipeline with multiple transactions, including the planned acquisitions of Karuna Therapeutics and RayzeBio. The company's pipeline acceleration and portfolio diversification have been highlighted as key factors in its growth.
   • Merck has a robust pipeline with significant milestones, including FDA approvals and new product launches.

Conclusion: Bristol Myers Squibb (BMY) shows stronger growth in revenue and earnings compared to Merck & Co., Inc. (MRK), with a more favorable P/E ratio. However, Merck's overall revenue and the growth in key products like Keytruda contribute to its substantial market presence. Bristol Myers Squibb's strategic moves and financial performance make it a competitive player in the pharmaceutical market, while Merck's diversified portfolio and strong pipeline positions it well for future growth. Investors may consider these factors when evaluating which stock aligns with their investment strategy.