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
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 conβ¦
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-7β¦
Accumulation Zones
| Metric |
CVX |
MRK |
| Zone Low |
$108.75 |
$88.00 |
| Zone High |
$123.25 |
$100.00 |
| In Buy Zone? |
No
|
No
|