CVX vs MRK: Which Is the Better Buy?

Side-by-side comparison of Chevron Corporation and Merck & Co., Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-11.
Chevron Corporation Β· Energy
$188.52
-23.1% upside to fair value
Grade D
VS
Merck & Co., Inc. Β· Healthcare
$121.42
-2.9% upside to fair value
Med Conviction Grade B
QuantHub Verdict
MRK has more upside to fair value (-2.9%). MRK trades at a lower forward P/E (14.0x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric CVX MRK
Current Price $188.52 $121.42
Fair Value Estimate $145.00 $118.00
Upside to Fair Value -23.1% -2.9%
Market Cap $376.9B $300.2B
Forward P/E 22.9x 14.0x
EV / EBITDA 7.8x 11.8x
Price / Sales 1.5x 4.1x
Price / FCF 17.0x 21.4x
Revenue Growth YoY -4.6% +1.3%
Gross Margin 30.4% 81.5%
Operating Margin 9.0% 41.2%
Return on Equity 6.6% 34.7%
Dividend Yield 4.52% 3.1%
FCF Yield 5.89% 4.7%
Analyst Consensus Buy Buy
Investment Thesis
CVX β€” Chevron Corporation
Chevron Corporation is a leading integrated oil and gas major with global upstream and downstream operations, a fortress balance sheet, and a shareholder-friendly capital return program. Under CEO Mike Wirth, the company has prioritized disciplined capital allocation, returning over $27 billion to shareholders in 2024 alone through buybacks and dividends, while maintaining a 38-year streak of con…
MRK β€” Merck & Co., Inc.
Merck is a top-5 global pharmaceutical company generating $65B in annual revenue with 81.5% gross margins and 28% net margins. Keytruda, the world's best-selling drug at $31.7B (49% of pharma revenue), faces patent expiry in 2028. Merck is aggressively building replacements through M&A and pipeline launches: Winrevair ($1.4B year one), Capvaxive ($759M), and the $6.7B Terns acquisition for TERN-7…
Accumulation Zones
Metric CVX MRK
Zone Low $108.75 $88.00
Zone High $123.25 $100.00
In Buy Zone? No No
← CVX Research    MRK Research β†’    All Research