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 2026-07-09.

CVX

Chevron Corporation · Energy

$175.91

-3.4% upside to fair value

Grade D

MRK

Merck & Co., Inc. · Healthcare

$113.87

-12.1% upside to fair value

Grade D High Quality

QuantHub Verdict

CVX has more upside to fair value (-3.4%). CVX trades at a lower forward P/E (30.4x). These are model outputs — not personalized investment advice. See all research →

Valuation & Fundamentals

Metric	CVX	MRK
Current Price	$175.91	$113.87
Fair Value Estimate	$169.96	$100.14
Upside to Fair Value	-3.4%	-12.1%
Market Cap	$350.3B	$281.2B
Forward P/E	30.4x	32.0x
EV / EBITDA	9.4x	17.3x
Price / Sales	1.9x	4.3x
Price / FCF	26.2x	19.9x
Revenue Growth YoY	+3.2%	+4.3%
Gross Margin	25.4%	75.9%
Operating Margin	8.4%	27.6%
Return on Equity	6.2%	17.9%
Dividend Yield	0%	0%
FCF Yield	3.82%	5.02%
Analyst Consensus	Buy	Hold

Investment Thesis

CVX — Chevron Corporation

Chevron Corporation operates as a leading integrated oil and gas company within the energy sector, demonstrating medium business quality with a stable competitive position but facing earnings pressure as evidenced by a 36.9% decline in earnings in the most recent quarter. The stock trades at a premium valuation with a P/E trailing and forward of 30.38, EV/EBITDA of 9.41, and a P/FCF of 26.2, refl…

MRK — Merck & Co., Inc.

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	CVX	MRK
Zone Low	$127.47	$75.11
Zone High	$144.47	$85.12
In Buy Zone?	No	No

← CVX Research MRK Research → All Research