DE vs MRK: Which Is the Better Buy?
Side-by-side comparison of Deere & Company and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Deere & Company · Industrials
$578.39
+22.4% upside to fair value
Grade C
VS
Merck & Co., Inc. · Healthcare
$119.07
-4.0% upside to fair value
Grade D
High Quality
QuantHub Verdict
DE has more upside to fair value
(+22.4%).
MRK trades at a lower forward P/E
(16.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DE |
MRK |
| Current Price |
$578.39 |
$119.07 |
| Fair Value Estimate |
$708.19 |
$114.30 |
| Upside to Fair Value |
+22.4%
|
-4.0%
|
| Market Cap |
$156.2B |
$294.4B |
| Forward P/E |
32.5x
|
16.2x
|
| EV / EBITDA |
18.4x
|
12.6x
|
| Price / Sales |
3.4x
|
4.5x
|
| Price / FCF |
43.7x
|
23.8x
|
| Revenue Growth YoY |
+16.3%
|
+5.0%
|
| Gross Margin |
35.6%
|
81.5%
|
| Operating Margin |
18.5%
|
41.2%
|
| Return on Equity |
18.9%
|
36.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.29%
|
4.2%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery, with a strong position in production and precision agriculture, small agriculture and turf, and construction and forestry segments. The company benefits from a durable competitive moat driven by its brand, intangible assets, and switching costs, supported by a CEO with deep institutional knowledge and…
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, particularly oncology and vaccines. The company benefits from a strong business quality characterized by a durable competitive moat, high gross margins of 81.5%, and a robust return on equity of 36.2%. Despite these strengths, the stock is currently fairly valued but slightly overvalued by 4% relative to its…
Accumulation Zones
| Metric |
DE |
MRK |
| Zone Low |
$531.14 |
$85.72 |
| Zone High |
$601.96 |
$97.16 |
| In Buy Zone? |
Yes
|
No
|