AVGO vs MRK: Which Is the Better Buy?
Side-by-side comparison of Broadcom Inc. and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Broadcom Inc. · Technology
$354.99
+15.1% 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
AVGO has more upside to fair value
(+15.1%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AVGO |
MRK |
| Current Price |
$354.99 |
$147.17 |
| Fair Value Estimate |
$408.70 |
$141.07 |
| Upside to Fair Value |
+15.1%
|
-4.1%
|
| Market Cap |
$1,688.9B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.0x
|
29.6x
|
| Price / Sales |
18.9x
|
5.5x
|
| Price / FCF |
42.9x
|
22.6x
|
| Revenue Growth YoY |
+85.5%
|
+5.1%
|
| Gross Margin |
67.7%
|
75.4%
|
| Operating Margin |
48.3%
|
16.7%
|
| Return on Equity |
43.9%
|
6.6%
|
| Dividend Yield |
0.73% |
2.31% |
| FCF Yield |
2.33%
|
4.42%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Broadcom is a diversified semiconductor and infrastructure software company led by CEO Hock Tan, with a portfolio spanning custom AI ASICs, networking, wireless, storage, and enterprise software. The business quality is high: TTM gross margin of 67.7%, TTM operating margin of 48.3%, TTM net margin of 42.9%, and ROE of 43.9% demonstrate exceptional profitability, while revenue growth of 85.5% and …
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 |
AVGO |
MRK |
| Zone Low |
$306.52 |
$105.80 |
| Zone High |
$347.39 |
$119.91 |
| In Buy Zone? |
No
|
No
|