DHR vs MRK: Which Is the Better Buy?
Side-by-side comparison of Danaher Corporation and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Danaher Corporation · Healthcare
$174.04
+13.2% upside to fair value
Grade B
VS
Merck & Co., Inc. · Healthcare
$119.07
-4.0% upside to fair value
Grade D
High Quality
QuantHub Verdict
DHR has more upside to fair value
(+13.2%).
MRK trades at a lower forward P/E
(16.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DHR |
MRK |
| Current Price |
$174.04 |
$119.07 |
| Fair Value Estimate |
$197.01 |
$114.30 |
| Upside to Fair Value |
+13.2%
|
-4.0%
|
| Market Cap |
$123.2B |
$294.4B |
| Forward P/E |
33.4x
|
16.2x
|
| EV / EBITDA |
20.3x
|
12.6x
|
| Price / Sales |
5.0x
|
4.5x
|
| Price / FCF |
23.3x
|
23.8x
|
| Revenue Growth YoY |
+3.7%
|
+5.0%
|
| Gross Margin |
60.7%
|
81.5%
|
| Operating Margin |
21.0%
|
41.2%
|
| Return on Equity |
7.1%
|
36.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.3%
|
4.2%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Danaher Corporation is a diversified healthcare company focused on medical diagnostics, life sciences, and biotechnology, generating approximately $24 billion in revenue with a strong recurring revenue base of over 81%. The company benefits from a high gross margin of 60.7% and solid operating margin of 21%, supported by a seasoned management team with a proven capital allocation track record inc…
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 |
DHR |
MRK |
| Zone Low |
$147.76 |
$85.72 |
| Zone High |
$167.46 |
$97.16 |
| In Buy Zone? |
No
|
No
|