MRK vs TSM: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and Taiwan Semiconductor Manufacturing Company Limited — 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
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
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 |
TSM |
| Current Price |
$114.27 |
$366.24 |
| Fair Value Estimate |
$118.00 |
$531.05 |
| Upside to Fair Value |
+3.3%
|
+45.0%
|
| Market Cap |
$282.2B |
$1,899.5B |
| Forward P/E |
22.4x
|
27.2x
|
| EV / EBITDA |
13.5x
|
17.3x
|
| Price / Sales |
4.3x
|
12.8x
|
| Price / FCF |
20.2x
|
51.6x
|
| Revenue Growth YoY |
+5.0%
|
+36.5%
|
| Gross Margin |
81.9%
|
61.9%
|
| Operating Margin |
27.5%
|
53.2%
|
| Return on Equity |
5.6%
|
36.9%
|
| Dividend Yield |
2.91% |
0% |
| FCF Yield |
4.95%
|
1.94%
|
| Analyst Consensus |
Overweight
|
Strong Buy
|
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…
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
MRK |
TSM |
| Zone Low |
$88.50 |
$398.29 |
| Zone High |
$100.30 |
$451.39 |
| In Buy Zone? |
No
|
Yes
|