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 2026-07-04.
Amazon.com, Inc. · Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B
High Quality
VS
Merck & Co., Inc. · Healthcare
$113.87
-12.1% upside to fair value
Grade D
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+22.0%).
AMZN trades at a lower forward P/E
(28.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
MRK |
| Current Price |
$242.67 |
$113.87 |
| Fair Value Estimate |
$295.95 |
$100.14 |
| Upside to Fair Value |
+22.0%
|
-12.1%
|
| Market Cap |
$2,610.4B |
$281.2B |
| Forward P/E |
28.7x
|
32.0x
|
| EV / EBITDA |
14.4x
|
17.3x
|
| Price / Sales |
3.5x
|
4.3x
|
| Price / FCF |
-1056.0x
|
19.9x
|
| Revenue Growth YoY |
+16.6%
|
+4.3%
|
| Gross Margin |
50.6%
|
75.9%
|
| Operating Margin |
11.5%
|
27.6%
|
| Return on Equity |
23.3%
|
17.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
5.02%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Des…
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 |
AMZN |
MRK |
| Zone Low |
$221.96 |
$75.11 |
| Zone High |
$251.56 |
$85.12 |
| In Buy Zone? |
Yes
|
No
|