ABBV vs MRK: Which Is the Better Buy?

Side-by-side comparison of AbbVie Inc. and Merck & Co., Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-06.
AbbVie Inc. Β· Healthcare
$261.07
+1.2% upside to fair value
Grade C High Quality
VS
Merck & Co., Inc. Β· Healthcare
$113.87
-12.1% upside to fair value
Grade D High Quality
QuantHub Verdict
ABBV has more upside to fair value (+1.2%). MRK trades at a lower forward P/E (32.0x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric ABBV MRK
Current Price $261.07 $113.87
Fair Value Estimate $264.30 $100.14
Upside to Fair Value +1.2% -12.1%
Market Cap $461.3B $281.2B
Forward P/E 128.0x 32.0x
EV / EBITDA 31.0x 17.3x
Price / Sales 7.3x 4.3x
Price / FCF 22.1x 19.9x
Revenue Growth YoY +12.4% +4.3%
Gross Margin 70.7% 75.9%
Operating Margin 27.6% 27.6%
Return on Equity 68.0% 17.9%
Dividend Yield 0% 0%
FCF Yield 4.52% 5.02%
Analyst Consensus Strong Buy Hold
Investment Thesis
ABBV β€” AbbVie Inc.
AbbVie Inc. is a leading healthcare company specializing in drug manufacturing with a strong focus on immunology and aesthetics. The company is transitioning from its historical Humira dominance, which has faced loss of exclusivity, toward high-growth assets like Skyrizi and Rinvoq that are driving robust revenue growth of 12.4% in the most recent quarter. Despite strong revenue growth and a dura…
MRK β€” Merck & Co., Inc.
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, vaccines, and animal health products. Its business quality is high, supported by a durable competitive moat anchored in the dominant global position of Keytruda in PD-1/PD-L1 oncology, a strong vaccines portfolio including Gardasil, and scale in R&D and manufacturing. The company benefits from a seasoned lea…
Accumulation Zones
Metric ABBV MRK
Zone Low $198.23 $75.11
Zone High $224.66 $85.12
In Buy Zone? No No
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