ABBV vs MRK: Which Is the Better Buy?
Side-by-side comparison of AbbVie Inc. and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-18.
AbbVie Inc. · Healthcare
$261.70
-1.0% upside to fair value
Med Conviction
Grade C
High Quality
VS
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
ABBV has more upside to fair value
(-1.0%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ABBV |
MRK |
| Current Price |
$261.70 |
$147.17 |
| Fair Value Estimate |
$259.04 |
$141.07 |
| Upside to Fair Value |
-1.0%
|
-4.1%
|
| Market Cap |
$462.4B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
24.8x
|
29.6x
|
| Price / Sales |
7.2x
|
5.5x
|
| Price / FCF |
23.6x
|
22.6x
|
| Revenue Growth YoY |
+10.2%
|
+5.1%
|
| Gross Margin |
71.5%
|
75.4%
|
| Operating Margin |
29.3%
|
16.7%
|
| Return on Equity |
-136.5%
|
6.6%
|
| Dividend Yield |
2.61% |
2.31% |
| FCF Yield |
4.25%
|
4.42%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
AbbVie is a diversified branded-biopharma company spanning immunology, neuroscience, oncology and aesthetics, with high-margin TTM economics including a 71.5% gross margin and 29.3% operating margin. Its successor immunology franchises are performing strongly: Q2 2026 revenue rose 10.2% year over year, with Skyrizi up 24.4% to $5.505 billion and Rinvoq up 24.5% to $2.525 billion, helping offset a…
Merck & Co., Inc. is a global healthcare leader with two core divisions, Pharmaceuticals and Animal Health, spanning oncology, vaccines, acute hospital care, immunology, neuroscience, virology, cardiovascular and diabetes, and it employs roughly 74,000 people under CEO Robert Davis. The business quality is medium: TTM gross margin of 75.4% and TTM operating margin of 16.7% reflect a genuinely hig…
Accumulation Zones
| Metric |
ABBV |
MRK |
| Zone Low |
$194.28 |
$105.80 |
| Zone High |
$220.18 |
$119.91 |
| In Buy Zone? |
No
|
No
|