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 2026-05-04.
Merck & Co., Inc. · Healthcare
$119.07
-4.0% upside to fair value
Grade D
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
MRK has more upside to fair value
(-4.0%).
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 |
RTX |
| Current Price |
$119.07 |
$172.90 |
| Fair Value Estimate |
$114.30 |
$136.05 |
| Upside to Fair Value |
-4.0%
|
-21.3%
|
| Market Cap |
$294.4B |
$232.8B |
| Forward P/E |
16.2x
|
32.1x
|
| EV / EBITDA |
12.6x
|
19.2x
|
| Price / Sales |
4.5x
|
2.6x
|
| Price / FCF |
23.8x
|
27.9x
|
| Revenue Growth YoY |
+5.0%
|
+8.7%
|
| Gross Margin |
81.5%
|
20.2%
|
| Operating Margin |
41.2%
|
10.4%
|
| Return on Equity |
36.2%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.2%
|
3.59%
|
| 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…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
MRK |
RTX |
| Zone Low |
$85.72 |
$102.04 |
| Zone High |
$97.16 |
$115.64 |
| In Buy Zone? |
No
|
No
|