DIS vs MRK: Which Is the Better Buy?
Side-by-side comparison of The Walt Disney Company and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
The Walt Disney Company · Communication Services
$103.49
+32.3% upside to fair value
Med Conviction
Grade B
High Quality
VS
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
DIS has more upside to fair value
(+32.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
DIS |
MRK |
| Current Price |
$103.49 |
$147.17 |
| Fair Value Estimate |
$136.94 |
$141.07 |
| Upside to Fair Value |
+32.3%
|
-4.1%
|
| Market Cap |
$179.7B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
9.5x
|
29.6x
|
| Price / Sales |
1.8x
|
5.5x
|
| Price / FCF |
21.7x
|
22.6x
|
| Revenue Growth YoY |
+6.8%
|
+5.1%
|
| Gross Margin |
37.6%
|
75.4%
|
| Operating Margin |
16.0%
|
16.7%
|
| Return on Equity |
7.9%
|
6.6%
|
| Dividend Yield |
1.45% |
2.31% |
| FCF Yield |
4.61%
|
4.42%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
The Walt Disney Company operates a global entertainment empire spanning two primary divisions: Disney Media and Entertainment Distribution, which houses the ABC, ESPN, Disney, Freeform, FX, Fox, National Geographic and Star networks along with the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar and Searchlight Pictures studios and the Disney+, Disney+ Hotstar, ESPN+, Hul…
Merck & Co., Inc. is a global healthcare leader with two core divisions, Pharmaceuticals and Animal Health, spanning oncology, vaccines, acute hospital care, immunology, neuroscience, virology, cardiovascular and diabetes, and it employs roughly 74,000 people under CEO Robert Davis. The business quality is medium: TTM gross margin of 75.4% and TTM operating margin of 16.7% reflect a genuinely hig…
Accumulation Zones
| Metric |
DIS |
MRK |
| Zone Low |
$102.70 |
$105.80 |
| Zone High |
$116.40 |
$119.91 |
| In Buy Zone? |
Yes
|
No
|