MRK vs PG: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and The Procter & Gamble Company — 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
The Procter & Gamble Company · Consumer Defensive
$147.04
+14.4% upside to fair value
Med Conviction
Grade B+
High Quality
QuantHub Verdict
PG has more upside to fair value
(+14.4%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
PG |
| Current Price |
$147.17 |
$147.04 |
| Fair Value Estimate |
$141.07 |
$168.19 |
| Upside to Fair Value |
-4.1%
|
+14.4%
|
| Market Cap |
$363.5B |
$349.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
17.6x
|
| Price / Sales |
5.5x
|
4.0x
|
| Price / FCF |
22.6x
|
22.4x
|
| Revenue Growth YoY |
+5.1%
|
+1.5%
|
| Gross Margin |
75.4%
|
50.2%
|
| Operating Margin |
16.7%
|
22.7%
|
| Return on Equity |
6.6%
|
29.8%
|
| Dividend Yield |
2.31% |
2.92% |
| FCF Yield |
4.42%
|
4.47%
|
| Analyst Consensus |
Buy
|
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…
Procter & Gamble is a global consumer-staples leader selling daily-use products across beauty, grooming, health care, fabric and home care, and baby, feminine and family care in about 180 countries. Business quality is high because its brands, consumer insight, R&D, marketing scale and global distribution underpin leading category positions, including over 60% in blades and razors and over 35% in…
Accumulation Zones
| Metric |
MRK |
PG |
| Zone Low |
$105.80 |
$126.14 |
| Zone High |
$119.91 |
$142.96 |
| In Buy Zone? |
No
|
No
|