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 2026-09-26.
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
VS
Tesla, Inc. · Consumer Cyclical
$372.11
+45.0% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
TSLA has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
TSLA |
| Current Price |
$147.17 |
$372.11 |
| Fair Value Estimate |
$141.07 |
$539.56 |
| Upside to Fair Value |
-4.1%
|
+45.0%
|
| Market Cap |
$363.5B |
$1,469.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
121.7x
|
| Price / Sales |
5.5x
|
14.2x
|
| Price / FCF |
22.6x
|
209.1x
|
| Revenue Growth YoY |
+5.1%
|
+25.5%
|
| Gross Margin |
75.4%
|
18.9%
|
| Operating Margin |
16.7%
|
4.2%
|
| Return on Equity |
6.6%
|
4.6%
|
| Dividend Yield |
2.31% |
0% |
| FCF Yield |
4.42%
|
0.48%
|
| Analyst Consensus |
Buy
|
Hold
|
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…
Tesla, Inc. designs, manufactures and sells electric vehicles and energy generation and storage systems, operating through Automotive and Energy Generation and Storage segments with 134,785 full-time employees and a market capitalization of $1,469.67 billion at a share price of $372.11. The business quality is mixed: revenue grew 25.5% year over year in the most recent quarter, but earnings fell …
Accumulation Zones
| Metric |
MRK |
TSLA |
| Zone Low |
$105.80 |
$404.67 |
| Zone High |
$119.91 |
$458.63 |
| In Buy Zone? |
No
|
Yes
|