HON vs MRK: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Honeywell International Inc. · Industrials
$212.55
-8.5% upside to fair value
Med Conviction
Grade C
VS
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
MRK has more upside to fair value
(-4.1%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
MRK |
| Current Price |
$212.55 |
$147.17 |
| Fair Value Estimate |
$194.50 |
$141.07 |
| Upside to Fair Value |
-8.5%
|
-4.1%
|
| Market Cap |
$67.4B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
7.4x
|
29.6x
|
| Price / Sales |
1.9x
|
5.5x
|
| Price / FCF |
16.4x
|
22.6x
|
| Revenue Growth YoY |
-6.1%
|
+5.1%
|
| Gross Margin |
36.6%
|
75.4%
|
| Operating Margin |
14.1%
|
16.7%
|
| Return on Equity |
41.7%
|
6.6%
|
| Dividend Yield |
2.09% |
2.31% |
| FCF Yield |
6.11%
|
4.42%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Honeywell International Inc. is a 101,000-employee diversified industrial technology and manufacturing conglomerate, led by CEO Vimal Kapur, spanning Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Business quality is solid but not exceptional: the company carries a durable intangible-asset and switching-cost moat in aerospace avion…
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 |
HON |
MRK |
| Zone Low |
$145.88 |
$105.80 |
| Zone High |
$165.32 |
$119.91 |
| In Buy Zone? |
No
|
No
|