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 2026-05-04.
The Walt Disney Company · Communication Services
$101.31
+66.6% 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
DIS has more upside to fair value
(+66.6%).
DIS trades at a lower forward P/E
(14.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DIS |
MRK |
| Current Price |
$101.31 |
$119.07 |
| Fair Value Estimate |
$168.80 |
$114.30 |
| Upside to Fair Value |
+66.6%
|
-4.0%
|
| Market Cap |
$179.5B |
$294.4B |
| Forward P/E |
14.8x
|
16.2x
|
| EV / EBITDA |
11.4x
|
12.6x
|
| Price / Sales |
1.9x
|
4.5x
|
| Price / FCF |
25.4x
|
23.8x
|
| Revenue Growth YoY |
+5.2%
|
+5.0%
|
| Gross Margin |
37.3%
|
81.5%
|
| Operating Margin |
14.2%
|
41.2%
|
| Return on Equity |
11.3%
|
36.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.93%
|
4.2%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
The Walt Disney Company operates as a diversified entertainment giant with strong competitive advantages from its vast intellectual property portfolio, global theme parks, and growing direct-to-consumer streaming platforms. The company demonstrates medium business quality with a durable moat supported by iconic brands and infrastructure, but faces execution risks in streaming profitability and pa…
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 |
DIS |
MRK |
| Zone Low |
$126.60 |
$85.72 |
| Zone High |
$143.48 |
$97.16 |
| In Buy Zone? |
Yes
|
No
|