GE vs MRK: Which Is the Better Buy?

Side-by-side comparison of GE Aerospace and Merck & Co., Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-16.
GE Aerospace Β· Industrials
$360.35
-25.9% upside to fair value
Grade D High Quality
VS
Merck & Co., Inc. Β· Healthcare
$113.87
-12.1% upside to fair value
Grade D High Quality
QuantHub Verdict
MRK has more upside to fair value (-12.1%). MRK trades at a lower forward P/E (32.0x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric GE MRK
Current Price $360.35 $113.87
Fair Value Estimate $267.03 $100.14
Upside to Fair Value -25.9% -12.1%
Market Cap $376.5B $281.2B
Forward P/E 42.3x 32.0x
EV / EBITDA 33.4x 17.3x
Price / Sales 7.8x 4.3x
Price / FCF 50.5x 19.9x
Revenue Growth YoY +21.1% +4.3%
Gross Margin 36.1% 75.9%
Operating Margin 21.0% 27.6%
Return on Equity 46.2% 17.9%
Dividend Yield 0% 0%
FCF Yield 1.98% 5.02%
Analyst Consensus Strong Buy Hold
Investment Thesis
GE β€” GE Aerospace
GE Aerospace operates in the Industrials sector within the Aerospace & Defense industry, delivering high-quality aerospace products and services. The business demonstrates strong fundamentals with a high return on equity of 46.2%, robust revenue growth of 21.1% in the most recent quarter, and solid earnings growth of 16.9% in the same period. Margins are healthy, with a gross margin of 36.1%, ope…
MRK β€” Merck & Co., Inc.
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, vaccines, and animal health products. Its business quality is high, supported by a durable competitive moat anchored in the dominant global position of Keytruda in PD-1/PD-L1 oncology, a strong vaccines portfolio including Gardasil, and scale in R&D and manufacturing. The company benefits from a seasoned lea…
Accumulation Zones
Metric GE MRK
Zone Low $200.27 $75.11
Zone High $226.98 $85.12
In Buy Zone? No No
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