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 2026-09-18.
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
VS
RTX Corporation · Industrials
$193.54
+33.0% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
RTX has more upside to fair value
(+33.0%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MRK |
RTX |
| Current Price |
$147.17 |
$193.54 |
| Fair Value Estimate |
$141.07 |
$257.36 |
| Upside to Fair Value |
-4.1%
|
+33.0%
|
| Market Cap |
$363.5B |
$260.9B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
18.1x
|
| Price / Sales |
5.5x
|
2.8x
|
| Price / FCF |
22.6x
|
21.7x
|
| Revenue Growth YoY |
+5.1%
|
+14.5%
|
| Gross Margin |
75.4%
|
20.3%
|
| Operating Margin |
16.7%
|
11.2%
|
| Return on Equity |
6.6%
|
11.8%
|
| Dividend Yield |
2.31% |
1.46% |
| FCF Yield |
4.42%
|
4.6%
|
| 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…
RTX Corporation is a $260.85 billion aerospace and defense conglomerate operating three segments — Collins Aerospace, Pratt & Whitney, and Raytheon — serving commercial aviation, military, and government customers worldwide with 180,000 employees. The business quality is high: it holds intangible-asset and switching-cost advantages rooted in long-cycle engine programs, proprietary defense electro…
Accumulation Zones
| Metric |
MRK |
RTX |
| Zone Low |
$105.80 |
$193.02 |
| Zone High |
$119.91 |
$218.76 |
| In Buy Zone? |
No
|
Yes
|