MRK vs XOM: Which Is the Better Buy?
Side-by-side comparison of Merck & Co., Inc. and Exxon Mobil Corporation — 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
Exxon Mobil Corporation · Energy
$163.18
+10.3% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
XOM has more upside to fair value
(+10.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MRK |
XOM |
| Current Price |
$147.17 |
$163.18 |
| Fair Value Estimate |
$141.07 |
$179.98 |
| Upside to Fair Value |
-4.1%
|
+10.3%
|
| Market Cap |
$363.5B |
$676.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
9.9x
|
| Price / Sales |
5.5x
|
1.9x
|
| Price / FCF |
22.6x
|
22.3x
|
| Revenue Growth YoY |
+5.1%
|
+44.1%
|
| Gross Margin |
75.4%
|
25.1%
|
| Operating Margin |
16.7%
|
10.7%
|
| Return on Equity |
6.6%
|
12.7%
|
| Dividend Yield |
2.31% |
2.52% |
| FCF Yield |
4.42%
|
4.49%
|
| 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…
Exxon Mobil is the largest integrated oil and gas major in the United States, operating across Upstream exploration and production, Downstream refining and fuels marketing, and Chemical manufacturing, with roughly 57,900 employees and a portfolio that spans conventional crude and natural gas, LNG, petrochemicals, and early-stage carbon capture, hydrogen, and biofuels ventures. The business qualit…
Accumulation Zones
| Metric |
MRK |
XOM |
| Zone Low |
$105.80 |
$134.98 |
| Zone High |
$119.91 |
$152.98 |
| In Buy Zone? |
No
|
No
|