MRK vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and Netflix, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-18.
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
VS
Netflix, Inc. · Communication Services
$76.41
+44.0% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+44.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
NFLX |
| Current Price |
$147.17 |
$76.41 |
| Fair Value Estimate |
$141.07 |
$110.00 |
| Upside to Fair Value |
-4.1%
|
+44.0%
|
| Market Cap |
$363.5B |
$318.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
10.6x
|
| Price / Sales |
5.5x
|
6.6x
|
| Price / FCF |
22.6x
|
29.1x
|
| Revenue Growth YoY |
+5.1%
|
+13.4%
|
| Gross Margin |
75.4%
|
49.1%
|
| Operating Margin |
16.7%
|
29.7%
|
| Return on Equity |
6.6%
|
48.0%
|
| Dividend Yield |
2.31% |
0% |
| FCF Yield |
4.42%
|
3.44%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
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…
Netflix is a global subscription and advertising-supported entertainment platform with a high-quality brand, content engine, recommendation technology and distribution scale, evidenced by more than 97 billion viewing hours in the first half of 2026 and an audience approaching one billion people. Fundamentals remain strong: revenue grew 13.4% year over year in the most recent quarter, TTM gross, o…
Accumulation Zones
| Metric |
MRK |
NFLX |
| Zone Low |
$105.80 |
$82.50 |
| Zone High |
$119.91 |
$93.50 |
| In Buy Zone? |
No
|
Yes
|