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 2026-09-23.
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
TSM |
| Current Price |
$147.17 |
$452.00 |
| Fair Value Estimate |
$141.07 |
$515.00 |
| Upside to Fair Value |
-4.1%
|
+13.9%
|
| Market Cap |
$363.5B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
19.2x
|
| Price / Sales |
5.5x
|
0.5x
|
| Price / FCF |
22.6x
|
2.1x
|
| Revenue Growth YoY |
+5.1%
|
+36.0%
|
| Gross Margin |
75.4%
|
64.2%
|
| Operating Margin |
16.7%
|
56.0%
|
| Return on Equity |
6.6%
|
39.3%
|
| Dividend Yield |
2.31% |
0.96% |
| FCF Yield |
4.42%
|
47.62%
|
| Analyst Consensus |
Buy
|
Buy
|
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…
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
MRK |
TSM |
| Zone Low |
$105.80 |
$386.25 |
| Zone High |
$119.91 |
$437.75 |
| In Buy Zone? |
No
|
No
|