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 2026-07-17.
Merck & Co., Inc. · Healthcare
$113.87
-12.1% upside to fair value
Grade D
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+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
(32.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MRK |
TSM |
| Current Price |
$113.87 |
$409.74 |
| Fair Value Estimate |
$100.14 |
$594.12 |
| Upside to Fair Value |
-12.1%
|
+45.0%
|
| Market Cap |
$281.2B |
$2,125.1B |
| Forward P/E |
32.0x
|
38.8x
|
| EV / EBITDA |
17.3x
|
17.6x
|
| Price / Sales |
4.3x
|
14.5x
|
| Price / FCF |
19.9x
|
58.4x
|
| Revenue Growth YoY |
+4.3%
|
+36.0%
|
| Gross Margin |
75.9%
|
61.9%
|
| Operating Margin |
27.6%
|
53.2%
|
| Return on Equity |
17.9%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.02%
|
1.71%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, vaccines, and animal health products. Its business quality is high, supported by a durable competitive moat anchored in the dominant global position of Keytruda in PD-1/PD-L1 oncology, a strong vaccines portfolio including Gardasil, and scale in R&D and manufacturing. The company benefits from a seasoned lea…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
MRK |
TSM |
| Zone Low |
$75.11 |
$445.59 |
| Zone High |
$85.12 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|