MRK vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and Netflix, Inc. β fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Merck & Co., Inc. Β· Healthcare
$113.87
-12.1% upside to fair value
Grade D
High Quality
VS
Netflix, Inc. Β· Communication Services
$77.38
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+45.0%).
NFLX trades at a lower forward P/E
(24.5x).
These are model outputs β not personalized investment advice.
See all research β
Valuation & Fundamentals
| Metric |
MRK |
NFLX |
| Current Price |
$113.87 |
$77.38 |
| Fair Value Estimate |
$100.14 |
$112.20 |
| Upside to Fair Value |
-12.1%
|
+45.0%
|
| Market Cap |
$281.2B |
$325.8B |
| Forward P/E |
32.0x
|
24.5x
|
| EV / EBITDA |
17.3x
|
9.7x
|
| Price / Sales |
4.3x
|
7.0x
|
| Price / FCF |
19.9x
|
27.4x
|
| Revenue Growth YoY |
+4.3%
|
+16.2%
|
| Gross Margin |
75.9%
|
49.0%
|
| Operating Margin |
27.6%
|
29.7%
|
| Return on Equity |
17.9%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.02%
|
3.65%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
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 leaβ¦
Netflix, Inc. operates a global streaming entertainment platform with a durable competitive moat driven by its massive scale, significant content investment, and advanced technology and data capabilities. The company benefits from strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, supported by a subscriber base exceeding 300 million and expanding advertising rβ¦
Accumulation Zones
| Metric |
MRK |
NFLX |
| Zone Low |
$75.11 |
$84.15 |
| Zone High |
$85.12 |
$95.37 |
| In Buy Zone? |
No
|
Yes
|