GS vs MRK: Which Is the Better Buy?
Side-by-side comparison of The Goldman Sachs Group, Inc. and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
The Goldman Sachs Group, Inc. · Financial Services
$926.55
-45.0% upside to fair value
Grade D
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%).
GS trades at a lower forward P/E
(15.6x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
GS |
MRK |
| Current Price |
$926.55 |
$114.27 |
| Fair Value Estimate |
$509.60 |
$118.00 |
| Upside to Fair Value |
-45.0%
|
+3.3%
|
| Market Cap |
$275.0B |
$282.2B |
| Forward P/E |
15.6x
|
22.4x
|
| EV / EBITDA |
30.6x
|
13.5x
|
| Price / Sales |
2.5x
|
4.3x
|
| Price / FCF |
-5.8x
|
20.2x
|
| Revenue Growth YoY |
-45.4%
|
+5.0%
|
| Gross Margin |
55.5%
|
81.9%
|
| Operating Margin |
20.5%
|
27.5%
|
| Return on Equity |
14.6%
|
5.6%
|
| Dividend Yield |
0% |
2.91% |
| FCF Yield |
—
|
4.95%
|
| Analyst Consensus |
Hold
|
Overweight
|
Investment Thesis
The Goldman Sachs Group, Inc. operates as a leading global financial services firm specializing in investment banking, securities, investment management, and consumer banking. The company benefits from a high-quality business model characterized by strong brand recognition, deep client relationships, and a history of stable leadership. However, the stock is currently significantly overvalued, tra…
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 |
GS |
MRK |
| Zone Low |
$382.20 |
$88.50 |
| Zone High |
$433.16 |
$100.30 |
| In Buy Zone? |
No
|
No
|