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 2026-04-11.
AbbVie Inc. · Healthcare
$208.05
+4.5% upside to fair value
Grade C
High Quality
VS
Merck & Co., Inc. · Healthcare
$121.42
-2.9% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
ABBV has more upside to fair value
(+4.5%).
MRK trades at a lower forward P/E
(14.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ABBV |
MRK |
| Current Price |
$208.05 |
$121.42 |
| Fair Value Estimate |
$217.50 |
$118.00 |
| Upside to Fair Value |
+4.5%
|
-2.9%
|
| Market Cap |
$367.9B |
$300.2B |
| Forward P/E |
14.9x
|
14.0x
|
| EV / EBITDA |
16.7x
|
11.8x
|
| Price / Sales |
6.1x
|
4.1x
|
| Price / FCF |
20.9x
|
21.4x
|
| Revenue Growth YoY |
+8.6%
|
+1.3%
|
| Gross Margin |
83.7%
|
81.5%
|
| Operating Margin |
34.7%
|
41.2%
|
| Return on Equity |
-129.24%
|
34.7%
|
| Dividend Yield |
3.2% |
3.1% |
| FCF Yield |
4.78%
|
4.7%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
AbbVie is a leading diversified biopharmaceutical company navigating the post-Humira transition with strong momentum from Skyrizi and Rinvoq in immunology and continued growth in neuroscience. Full-year 2025 revenue reached $61.2 billion with a gross margin of 83.7% and operating margin of 34.7%, demonstrating operational strength despite the ongoing Humira erosion. Management guides to $67 billi…
Merck is a top-5 global pharmaceutical company generating $65B in annual revenue with 81.5% gross margins and 28% net margins. Keytruda, the world's best-selling drug at $31.7B (49% of pharma revenue), faces patent expiry in 2028. Merck is aggressively building replacements through M&A and pipeline launches: Winrevair ($1.4B year one), Capvaxive ($759M), and the $6.7B Terns acquisition for TERN-7…
Accumulation Zones
| Metric |
ABBV |
MRK |
| Zone Low |
$163.13 |
$88.00 |
| Zone High |
$184.88 |
$100.00 |
| In Buy Zone? |
No
|
No
|