MRK vs UPS: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and United Parcel Service, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-19.
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
VS
United Parcel Service, Inc. · Industrials
$99.02
+21.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
UPS has more upside to fair value
(+21.1%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
UPS |
| Current Price |
$147.17 |
$99.02 |
| Fair Value Estimate |
$141.07 |
$119.92 |
| Upside to Fair Value |
-4.1%
|
+21.1%
|
| Market Cap |
$363.5B |
$84.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
10.2x
|
| Price / Sales |
5.5x
|
0.9x
|
| Price / FCF |
22.6x
|
15.3x
|
| Revenue Growth YoY |
+5.1%
|
+7.6%
|
| Gross Margin |
75.4%
|
16.6%
|
| Operating Margin |
16.7%
|
7.3%
|
| Return on Equity |
6.6%
|
29.1%
|
| Dividend Yield |
2.31% |
6.62% |
| FCF Yield |
4.42%
|
6.52%
|
| 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…
United Parcel Service is the world's largest integrated package delivery and logistics network, operating U.S. Domestic Package and International Package segments with roughly 460,000 employees and a 119-year operating history. The business quality is medium: the global air-and-ground network, brand, and scale are genuine assets, but the company is exposed to commoditized freight, Amazon volume c…
Accumulation Zones
| Metric |
MRK |
UPS |
| Zone Low |
$105.80 |
$89.94 |
| Zone High |
$119.91 |
$101.93 |
| In Buy Zone? |
No
|
Yes
|