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 2026-05-04.
Merck & Co., Inc. · Healthcare
$119.07
-4.0% upside to fair value
Grade D
High Quality
VS
The Procter & Gamble Company · Consumer Defensive
$143.45
+13.8% upside to fair value
Grade B
High Quality
QuantHub Verdict
PG has more upside to fair value
(+13.8%).
MRK trades at a lower forward P/E
(16.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MRK |
PG |
| Current Price |
$119.07 |
$143.45 |
| Fair Value Estimate |
$114.30 |
$163.27 |
| Upside to Fair Value |
-4.0%
|
+13.8%
|
| Market Cap |
$294.4B |
$334.0B |
| Forward P/E |
16.2x
|
20.8x
|
| EV / EBITDA |
12.6x
|
15.4x
|
| Price / Sales |
4.5x
|
3.9x
|
| Price / FCF |
23.8x
|
22.2x
|
| Revenue Growth YoY |
+5.0%
|
+7.4%
|
| Gross Margin |
81.5%
|
50.3%
|
| Operating Margin |
41.2%
|
23.2%
|
| Return on Equity |
36.2%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.2%
|
4.5%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
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…
The Procter & Gamble Company is a leading consumer defensive firm specializing in household and personal products with a diversified portfolio across fabric and home care, baby and family care, beauty, health care, and grooming segments. The business quality is high, supported by durable brands, strong margins with a 50.3% gross margin and 19.2% net margin, and consistent earnings growth evidence…
Accumulation Zones
| Metric |
MRK |
PG |
| Zone Low |
$85.72 |
$122.45 |
| Zone High |
$97.16 |
$138.78 |
| In Buy Zone? |
No
|
No
|