MRK vs UNH: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and UnitedHealth Group Incorporated — 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
UnitedHealth Group Incorporated · Healthcare
$423.38
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+45.0%).
UNH trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MRK |
UNH |
| Current Price |
$113.87 |
$423.38 |
| Fair Value Estimate |
$100.14 |
$613.90 |
| Upside to Fair Value |
-12.1%
|
+45.0%
|
| Market Cap |
$281.2B |
$384.5B |
| Forward P/E |
32.0x
|
27.2x
|
| EV / EBITDA |
17.3x
|
13.8x
|
| Price / Sales |
4.3x
|
0.8x
|
| Price / FCF |
19.9x
|
19.6x
|
| Revenue Growth YoY |
+4.3%
|
+0.4%
|
| Gross Margin |
75.9%
|
18.8%
|
| Operating Margin |
27.6%
|
4.2%
|
| Return on Equity |
17.9%
|
12.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.02%
|
5.12%
|
| 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…
UnitedHealth Group Incorporated operates in the healthcare sector, specifically within medical and healthcare plans, providing a durable business model supported by a strong competitive moat and consistent earnings growth. The company currently trades at a price of $423.38 with a market cap of $359.873 billion, reflecting a valuation that is cheap relative to its five-year history, supported by a…
Accumulation Zones
| Metric |
MRK |
UNH |
| Zone Low |
$75.11 |
$460.42 |
| Zone High |
$85.12 |
$521.81 |
| In Buy Zone? |
No
|
Yes
|