MRK vs TMO: Which Is the Better Buy?

Side-by-side comparison of Merck & Co., Inc. and Thermo Fisher Scientific Inc. — 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
Thermo Fisher Scientific Inc. · Healthcare
$658.32
+31.1% upside to fair value
Med Conviction Grade B High Quality
QuantHub Verdict
TMO has more upside to fair value (+31.1%). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric MRK TMO
Current Price $147.17 $658.32
Fair Value Estimate $141.07 $863.34
Upside to Fair Value -4.1% +31.1%
Market Cap $363.5B $244.7B
Forward P/E — —
EV / EBITDA 29.6x 25.9x
Price / Sales 5.5x 5.3x
Price / FCF 22.6x 33.4x
Revenue Growth YoY +5.1% +10.5%
Gross Margin 75.4% 40.4%
Operating Margin 16.7% 17.7%
Return on Equity 6.6% 13.4%
Dividend Yield 2.31% 0.28%
FCF Yield 4.42% 3.0%
Analyst Consensus Buy Strong Buy
Investment Thesis
MRK — Merck & Co., Inc.
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…
TMO — Thermo Fisher Scientific Inc.
Thermo Fisher Scientific is a global life-sciences and laboratory-services platform spanning Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services, with recognized brands including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Patheon, and PPD, serving pharmaceutical, biotech, clinical, academic, and governme…
Accumulation Zones
Metric MRK TMO
Zone Low $105.80 $647.50
Zone High $119.91 $733.84
In Buy Zone? No Yes
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