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 2026-09-18.
Amazon.com, Inc. · Consumer Cyclical
$251.19
+18.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
AMZN has more upside to fair value
(+18.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMZN |
MRK |
| Current Price |
$251.19 |
$147.17 |
| Fair Value Estimate |
$297.67 |
$141.07 |
| Upside to Fair Value |
+18.5%
|
-4.1%
|
| Market Cap |
$2,702.1B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
11.2x
|
29.6x
|
| Price / Sales |
3.5x
|
5.5x
|
| Price / FCF |
—
|
22.6x
|
| Revenue Growth YoY |
+19.6%
|
+5.1%
|
| Gross Margin |
50.8%
|
75.4%
|
| Operating Margin |
12.1%
|
16.7%
|
| Return on Equity |
30.5%
|
6.6%
|
| Dividend Yield |
0% |
2.31% |
| FCF Yield |
—
|
4.42%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Amazon.com operates a vast global retail enterprise spanning online and physical stores, third-party seller services, advertising, subscription offerings, and Amazon Web Services, the world's largest cloud infrastructure provider. The business quality is high: trailing-twelve-month gross margin of 50.8%, operating margin of 12.1%, and net margin of 17.4% reflect a durable mix shift toward high-ma…
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 |
AMZN |
MRK |
| Zone Low |
$223.25 |
$105.80 |
| Zone High |
$253.02 |
$119.91 |
| In Buy Zone? |
Yes
|
No
|