MRK vs NKE: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and NIKE, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Merck & Co., Inc. · Healthcare
$121.42
-2.9% upside to fair value
Med Conviction
Grade B
VS
NIKE, Inc. · Consumer Cyclical
$42.62
+45.5% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
NKE has more upside to fair value
(+45.5%).
MRK trades at a lower forward P/E
(14.0x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
NKE |
| Current Price |
$121.42 |
$42.62 |
| Fair Value Estimate |
$118.00 |
$62.00 |
| Upside to Fair Value |
-2.9%
|
+45.5%
|
| Market Cap |
$300.2B |
$63.0B |
| Forward P/E |
14.0x
|
27.9x
|
| EV / EBITDA |
11.8x
|
20.7x
|
| Price / Sales |
4.1x
|
1.4x
|
| Price / FCF |
21.4x
|
19.4x
|
| Revenue Growth YoY |
+1.3%
|
-9.8%
|
| Gross Margin |
81.5%
|
42.7%
|
| Operating Margin |
41.2%
|
8.0%
|
| Return on Equity |
34.7%
|
24.4%
|
| Dividend Yield |
3.1% |
3.8% |
| FCF Yield |
4.7%
|
5.2%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Merck is a top-5 global pharmaceutical company generating $65B in annual revenue with 81.5% gross margins and 28% net margins. Keytruda, the world's best-selling drug at $31.7B (49% of pharma revenue), faces patent expiry in 2028. Merck is aggressively building replacements through M&A and pipeline launches: Winrevair ($1.4B year one), Capvaxive ($759M), and the $6.7B Terns acquisition for TERN-7…
Nike is the world's largest athletic footwear and apparel company with $46.3B in FY2025 revenue, operating across 190+ countries with the Nike, Jordan, and Converse brands. The stock trades near its 9-year low at $42.62 after an 11% single-day crash following a Q3 FY2026 earnings report that showed 35% net income decline and weak Q4 guidance calling for a further 2-4% revenue decline. FY2025 reve…
Accumulation Zones
| Metric |
MRK |
NKE |
| Zone Low |
$88.00 |
$44.00 |
| Zone High |
$100.00 |
$50.00 |
| In Buy Zone? |
No
|
Yes
|