GE vs MRK: Which Is the Better Buy?

Side-by-side comparison of GE Aerospace and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-20.
GE Aerospace · Industrials
$284.60
-24.0% upside to fair value
Grade B High Quality
VS
Merck & Co., Inc. · Healthcare
$114.27
+3.3% upside to fair value
Grade C High Quality
QuantHub Verdict
MRK has more upside to fair value (+3.3%). MRK trades at a lower forward P/E (22.4x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric GE MRK
Current Price $284.60 $114.27
Fair Value Estimate $216.30 $118.00
Upside to Fair Value -24.0% +3.3%
Market Cap $297.4B $282.2B
Forward P/E 34.1x 22.4x
EV / EBITDA 27.9x 13.5x
Price / Sales 6.2x 4.3x
Price / FCF 39.8x 20.2x
Revenue Growth YoY +24.7% +5.0%
Gross Margin 34.8% 81.9%
Operating Margin 18.5% 27.5%
Return on Equity 46.4% 5.6%
Dividend Yield 0% 2.91%
FCF Yield 2.51% 4.95%
Analyst Consensus Strong Buy Overweight
Investment Thesis
GE — GE Aerospace
GE Aerospace is a leading player in the aerospace and defense industry, specializing in jet engines and propulsion technologies with a strong presence in commercial engines and defense propulsion segments. The company benefits from a high-quality management team led by CEO H. Lawrence Culp, Jr., who has extensive experience in operational transformation and aerospace leadership. Despite a premium…
MRK — Merck & Co., Inc.
Merck delivered a clean Q1 2026 operational beat on April 30, with revenue of 16.3 billion dollars growing 5 percent year over year and Keytruda sales rising 12 percent to 8.0 billion dollars. The reported loss of 1.28 dollars per share, though better than the negative 1.47 dollar consensus estimate, reflected a 3.62 dollar per share IPR and D charge tied to the Cidara Therapeutics acquisition an…
Accumulation Zones
Metric GE MRK
Zone Low $162.23 $88.50
Zone High $183.86 $100.30
In Buy Zone? No No
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