CVX vs MRK: Which Is the Better Buy?
Side-by-side comparison of Chevron Corporation and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Chevron Corporation · Energy
$205.52
+35.9% 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
CVX has more upside to fair value
(+35.9%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CVX |
MRK |
| Current Price |
$205.52 |
$147.17 |
| Fair Value Estimate |
$279.29 |
$141.07 |
| Upside to Fair Value |
+35.9%
|
-4.1%
|
| Market Cap |
$409.3B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
7.8x
|
29.6x
|
| Price / Sales |
2.0x
|
5.5x
|
| Price / FCF |
15.0x
|
22.6x
|
| Revenue Growth YoY |
+51.4%
|
+5.1%
|
| Gross Margin |
31.0%
|
75.4%
|
| Operating Margin |
15.8%
|
16.7%
|
| Return on Equity |
11.0%
|
6.6%
|
| Dividend Yield |
3.43% |
2.31% |
| FCF Yield |
6.67%
|
4.42%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Chevron is a global integrated oil and gas major organized into Upstream and Downstream segments, spanning crude oil and natural gas exploration, LNG processing and transport, refining, petrochemicals, and lubricants, with 43,039 full-time employees and a market capitalization of $409.31 billion at a current price of $205.52. The business quality is high: it generates $13.71 of free cash flow per…
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 |
CVX |
MRK |
| Zone Low |
$209.47 |
$105.80 |
| Zone High |
$237.40 |
$119.91 |
| In Buy Zone? |
Yes
|
No
|