MRK vs TSLA: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and Tesla, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Merck & Co., Inc. · Healthcare
$114.27
+3.3% upside to fair value
Grade C
High Quality
VS
Tesla, Inc. · Consumer Cyclical
$387.51
-45.0% upside to fair value
Grade D
QuantHub Verdict
MRK has more upside to fair value
(+3.3%).
MRK trades at a lower forward P/E
(22.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MRK |
TSLA |
| Current Price |
$114.27 |
$387.51 |
| Fair Value Estimate |
$118.00 |
$213.13 |
| Upside to Fair Value |
+3.3%
|
-45.0%
|
| Market Cap |
$282.2B |
$1,454.1B |
| Forward P/E |
22.4x
|
330.0x
|
| EV / EBITDA |
13.5x
|
122.9x
|
| Price / Sales |
4.3x
|
15.3x
|
| Price / FCF |
20.2x
|
233.8x
|
| Revenue Growth YoY |
+5.0%
|
-3.1%
|
| Gross Margin |
81.9%
|
18.0%
|
| Operating Margin |
27.5%
|
4.6%
|
| Return on Equity |
5.6%
|
4.8%
|
| Dividend Yield |
2.91% |
0% |
| FCF Yield |
4.95%
|
0.43%
|
| Analyst Consensus |
Overweight
|
Hold
|
Investment Thesis
Merck delivered a clean Q1 2026 operational beat on April 30, with revenue of 16.3 billion dollars growing 5 percent year over year and Keytruda sales rising 12 percent to 8.0 billion dollars. The reported loss of 1.28 dollars per share, though better than the negative 1.47 dollar consensus estimate, reflected a 3.62 dollar per share IPR and D charge tied to the Cidara Therapeutics acquisition an…
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent qua…
Accumulation Zones
| Metric |
MRK |
TSLA |
| Zone Low |
$88.50 |
$159.85 |
| Zone High |
$100.30 |
$181.16 |
| In Buy Zone? |
No
|
No
|