MRK vs RTX: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Merck & Co., Inc. · Healthcare
$113.87
-12.1% upside to fair value
Grade D
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
MRK has more upside to fair value
(-12.1%).
MRK trades at a lower forward P/E
(32.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MRK |
RTX |
| Current Price |
$113.87 |
$185.60 |
| Fair Value Estimate |
$100.14 |
$138.81 |
| Upside to Fair Value |
-12.1%
|
-25.2%
|
| Market Cap |
$281.2B |
$249.9B |
| Forward P/E |
32.0x
|
34.3x
|
| EV / EBITDA |
17.3x
|
18.3x
|
| Price / Sales |
4.3x
|
2.8x
|
| Price / FCF |
19.9x
|
29.9x
|
| Revenue Growth YoY |
+4.3%
|
+8.7%
|
| Gross Margin |
75.9%
|
20.2%
|
| Operating Margin |
27.6%
|
10.9%
|
| Return on Equity |
17.9%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.02%
|
3.34%
|
| Analyst Consensus |
Hold
|
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 lea…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
MRK |
RTX |
| Zone Low |
$75.11 |
$104.11 |
| Zone High |
$85.12 |
$117.99 |
| In Buy Zone? |
No
|
No
|