AMZN vs MRK: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Amazon.com, Inc. · Consumer Cyclical
$259.34
+21.8% upside to fair value
Grade B
High Quality
VS
Merck & Co., Inc. · Healthcare
$114.27
+3.3% upside to fair value
Grade C
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+21.8%).
MRK trades at a lower forward P/E
(22.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
MRK |
| Current Price |
$259.34 |
$114.27 |
| Fair Value Estimate |
$316.00 |
$118.00 |
| Upside to Fair Value |
+21.8%
|
+3.3%
|
| Market Cap |
$2,789.8B |
$282.2B |
| Forward P/E |
26.5x
|
22.4x
|
| EV / EBITDA |
16.8x
|
13.5x
|
| Price / Sales |
3.9x
|
4.3x
|
| Price / FCF |
—
|
20.2x
|
| Revenue Growth YoY |
+17.0%
|
+5.0%
|
| Gross Margin |
51.8%
|
81.9%
|
| Operating Margin |
13.1%
|
27.5%
|
| Return on Equity |
21.5%
|
5.6%
|
| Dividend Yield |
0% |
2.91% |
| FCF Yield |
-0.81%
|
4.95%
|
| Analyst Consensus |
Strong Buy
|
Overweight
|
Investment Thesis
Amazon delivered a landmark Q1 2026 with revenue of $181.5 billion up 17% year over year and diluted EPS of $2.78 versus the $1.63 consensus, driven by AWS reaccelerating to 28% growth, its fastest pace in fifteen quarters, and a record consolidated operating margin of 13.1%. AWS generated $37.6 billion in revenue at a 37.7% segment operating margin, contributing $14.2 billion in operating income…
Merck delivered a clean Q1 2026 operational beat on April 30, with revenue of 16.3 billion dollars growing 5 percent year over year and Keytruda sales rising 12 percent to 8.0 billion dollars. The reported loss of 1.28 dollars per share, though better than the negative 1.47 dollar consensus estimate, reflected a 3.62 dollar per share IPR and D charge tied to the Cidara Therapeutics acquisition an…
Accumulation Zones
| Metric |
AMZN |
MRK |
| Zone Low |
$237.00 |
$88.50 |
| Zone High |
$268.60 |
$100.30 |
| In Buy Zone? |
Yes
|
No
|