COST vs MRK: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% 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
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
MRK |
| Current Price |
$896.48 |
$147.17 |
| Fair Value Estimate |
$1,117.50 |
$141.07 |
| Upside to Fair Value |
+24.7%
|
-4.1%
|
| Market Cap |
$397.6B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
29.6x
|
| Price / Sales |
1.3x
|
5.5x
|
| Price / FCF |
42.4x
|
22.6x
|
| Revenue Growth YoY |
+11.1%
|
+5.1%
|
| Gross Margin |
17.5%
|
75.4%
|
| Operating Margin |
3.9%
|
16.7%
|
| Return on Equity |
28.0%
|
6.6%
|
| Dividend Yield |
0.62% |
2.31% |
| FCF Yield |
2.36%
|
4.42%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
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 |
COST |
MRK |
| Zone Low |
$838.12 |
$105.80 |
| Zone High |
$949.88 |
$119.91 |
| In Buy Zone? |
Yes
|
No
|