KO vs MRK: Which Is the Better Buy?
Side-by-side comparison of The Coca-Cola Company and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
The Coca-Cola Company · Consumer Defensive
$78.19
-7.8% upside to fair value
Grade D
High Quality
VS
Merck & Co., Inc. · Healthcare
$119.07
-4.0% upside to fair value
Grade D
High Quality
QuantHub Verdict
MRK has more upside to fair value
(-4.0%).
MRK trades at a lower forward P/E
(16.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
KO |
MRK |
| Current Price |
$78.19 |
$119.07 |
| Fair Value Estimate |
$72.12 |
$114.30 |
| Upside to Fair Value |
-7.8%
|
-4.0%
|
| Market Cap |
$336.5B |
$294.4B |
| Forward P/E |
24.6x
|
16.2x
|
| EV / EBITDA |
19.9x
|
12.6x
|
| Price / Sales |
6.8x
|
4.5x
|
| Price / FCF |
26.8x
|
23.8x
|
| Revenue Growth YoY |
+12.1%
|
+5.0%
|
| Gross Margin |
61.7%
|
81.5%
|
| Operating Margin |
29.3%
|
41.2%
|
| Return on Equity |
43.6%
|
36.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.73%
|
4.2%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
The Coca-Cola Company is a leading global beverage company specializing in non-alcoholic drinks with a diversified portfolio including sparkling soft drinks, juices, water, coffee, and energy beverages. The business quality is high due to its durable brand moat, consistent earnings growth, and strong operational efficiency, reflected in a 43.6% return on equity and 12.1% revenue growth in the mos…
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 |
KO |
MRK |
| Zone Low |
$54.09 |
$85.72 |
| Zone High |
$61.30 |
$97.16 |
| In Buy Zone? |
No
|
No
|