Comprehensive Stock Comparison
Compare Merck & Co., Inc. (MRK) vs Apple Inc. (AAPL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AAPL | 6.4% revenue growth vs MRK's 1.3% |
| Value | MRK | Lower P/E (24.0x vs 31.1x), PEG 1.13 vs 1.74 |
| Quality / Margins | MRK | 28.1% net margin vs AAPL's 27.0% |
| Stability / Safety | MRK | Beta 0.43 vs AAPL's 1.28 |
| Dividends | AAPL | 0.4% yield; 14-year raise streak; MRK pays no meaningful dividend |
| Momentum (1Y) | MRK | +37.7% vs AAPL's +9.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Merck & Co. is a global pharmaceutical company that develops and markets prescription medicines, vaccines, and animal health products. It generates revenue primarily from its Pharmaceutical segment — including blockbuster cancer drug Keytruda — which accounts for roughly 90% of sales, with the remaining 10% coming from Animal Health products. The company's key competitive advantage lies in its deep oncology franchise, particularly Keytruda's dominant position in immuno-oncology, supported by extensive clinical data and patent protection.
Apple is a technology giant that designs and sells premium consumer electronics — most famously the iPhone — along with related software and services. It generates revenue primarily from hardware sales (roughly 80% of total) and a fast-growing services segment (around 20%) that includes the App Store, subscriptions, and licensing. Its key competitive advantage is a powerful ecosystem that locks users into its hardware, software, and services through seamless integration and high switching costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AAPL leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). MRK leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
AAPL is the larger business by revenue, generating $435.6B annually — 6.7x MRK's $65.0B. Profitability is closely matched — net margins range from 28.1% (MRK) to 27.0% (AAPL). On growth, AAPL holds the edge at +15.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MRKMerck & Co., Inc. | AAPLApple Inc. |
|---|---|---|
| RevenueTrailing 12 months | $65.0B | $435.6B |
| EBITDAEarnings before interest/tax | $31.1B | $152.9B |
| Net IncomeAfter-tax profit | $18.3B | $117.8B |
| Free Cash FlowCash after capex | $10.5B | $123.3B |
| Gross MarginGross profit ÷ Revenue | +81.5% | +47.3% |
| Operating MarginEBIT ÷ Revenue | +41.2% | +32.4% |
| Net MarginNet income ÷ Revenue | +28.1% | +27.0% |
| FCF MarginFCF ÷ Revenue | +16.2% | +28.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.0% | +15.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -19.6% | +18.3% |
Valuation Metrics
At 17.0x trailing earnings, MRK trades at a 52% valuation discount to AAPL's 35.4x P/E. Adjusting for growth (PEG ratio), MRK offers better value at 0.80x vs AAPL's 1.98x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | MRKMerck & Co., Inc. | AAPLApple Inc. |
|---|---|---|
| Market CapShares × price | $307.2B | $3.88T |
| Enterprise ValueMkt cap + debt − cash | $307.2B | $3.97T |
| Trailing P/EPrice ÷ TTM EPS | 17.00x | 35.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 24.05x | 31.15x |
| PEG RatioP/E ÷ EPS growth rate | 0.80x | 1.98x |
| EV / EBITDAEnterprise value multiple | 9.89x | 27.45x |
| Price / SalesMarket cap ÷ Revenue | 4.73x | 9.33x |
| Price / BookPrice ÷ Book value/share | 5.98x | 53.76x |
| Price / FCFMarket cap ÷ FCF | — | 39.33x |
Profitability & Efficiency
AAPL delivers a 133.5% return on equity — every $100 of shareholder capital generates $134 in annual profit, vs $35 for MRK. On the Piotroski fundamental quality scale (0–9), AAPL scores 7/9 vs MRK's 2/9, reflecting strong financial health.
| Metric | MRKMerck & Co., Inc. | AAPLApple Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +35.2% | +133.5% |
| ROA (TTM)Return on assets | — | +31.1% |
| ROICReturn on invested capital | +32.6% | +64.5% |
| ROCEReturn on capital employed | — | +69.6% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 7 |
| Debt / EquityFinancial leverage | — | 1.67x |
| Net DebtTotal debt minus cash | $0 | $89.7B |
| Cash & Equiv.Liquid assets | — | $33.5B |
| Total DebtShort + long-term debt | $0 | $123.3B |
| Interest CoverageEBIT ÷ Interest expense | 25.93x | — |
Total Returns (with DRIP)
A $10,000 investment in AAPL five years ago would be worth $21,049 today (with dividends reinvested), compared to $20,074 for MRK. Over the past 12 months, MRK leads with a +37.7% total return vs AAPL's +9.7%. The 3-year compound annual growth rate (CAGR) favors AAPL at 21.9% vs MRK's 7.8% — a key indicator of consistent wealth creation.
| Metric | MRKMerck & Co., Inc. | AAPLApple Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +16.3% | -2.4% |
| 1-Year ReturnPast 12 months | +37.7% | +9.7% |
| 3-Year ReturnCumulative with dividends | +25.3% | +81.2% |
| 5-Year ReturnCumulative with dividends | +100.7% | +110.5% |
| 10-Year ReturnCumulative with dividends | +210.2% | +1027.4% |
| CAGR (3Y)Annualised 3-year return | +7.8% | +21.9% |
Risk & Volatility
MRK is the less volatile stock with a 0.43 beta — it tends to amplify market swings less than AAPL's 1.28 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MRK currently trades 98.9% from its 52-week high vs AAPL's 91.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MRKMerck & Co., Inc. | AAPLApple Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.43x | 1.28x |
| 52-Week HighHighest price in past year | $125.14 | $288.61 |
| 52-Week LowLowest price in past year | $73.31 | $169.21 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +91.5% |
| RSI (14)Momentum oscillator 0–100 | 56.0 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 10.8M | 40.9M |
Analyst Outlook
Wall Street rates MRK as "Buy" and AAPL as "Buy". Consensus price targets imply 14.7% upside for AAPL (target: $303) vs 0.1% for MRK (target: $124). AAPL is the only dividend payer here at 0.39% yield — a key consideration for income-focused portfolios.
| Metric | MRKMerck & Co., Inc. | AAPLApple Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $123.92 | $303.11 |
| # AnalystsCovering analysts | 36 | 109 |
| Dividend YieldAnnual dividend ÷ price | — | +0.4% |
| Dividend StreakConsecutive years of raises | 13 | 14 |
| Dividend / ShareAnnual DPS | — | $1.03 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 100 | 155.3 | +55.3% |
| Apple Inc. (AAPL) | 100 | 395.1 | +295.1% |
Apple Inc. (AAPL) returned +110% over 5 years vs Merck & Co., Inc. (MRK)'s +101%. A $10,000 investment in AAPL 5 years ago would be worth $21,049 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | $39.8B | $65.0B | +63.3% |
| Apple Inc. (AAPL) | $215.6B | $416.2B | +93.0% |
Merck & Co., Inc.'s revenue grew from $39.8B (2016) to $65.0B (2025) — a 5.6% CAGR. Apple Inc.'s revenue grew from $215.6B (2016) to $416.2B (2025) — a 7.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 9.8% | 28.1% | +185.1% |
| Apple Inc. (AAPL) | 21.2% | 26.9% | +27.0% |
Merck & Co., Inc.'s net margin went from 10% (2016) to 28% (2025). Apple Inc.'s net margin went from 21% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 57.7 | 14.5 | -74.9% |
| Apple Inc. (AAPL) | 18.4 | 36.4 | +97.8% |
Merck & Co., Inc. has traded in a 15x–58x P/E range over 8 years; current trailing P/E is ~17x. Apple Inc. has traded in a 13x–41x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 2.04 | 7.28 | +256.9% |
| Apple Inc. (AAPL) | 2.08 | 7.46 | +258.7% |
Merck & Co., Inc.'s EPS grew from $2.04 (2016) to $7.28 (2025) — a 15% CAGR. Apple Inc.'s EPS grew from $2.08 (2016) to $7.46 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Merck & Co., Inc. generated $0M FCF in 2025 (-100% vs 2021). Apple Inc. generated $99B FCF in 2025 (+6% vs 2021).
MRK vs AAPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MRK or AAPL a better buy right now?
Merck & Co., Inc. (MRK) offers the better valuation at 17.0x trailing P/E (24.0x forward), making it the more compelling value choice. Analysts rate Merck & Co., Inc. (MRK) a "Buy" — based on 36 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — MRK or AAPL?
On trailing P/E, Merck & Co., Inc. (MRK) is the cheapest at 17.0x versus Apple Inc. at 35.4x. On forward P/E, Merck & Co., Inc. is actually cheaper at 24.0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Merck & Co., Inc. wins at 1.13x versus Apple Inc.'s 1.74x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — MRK or AAPL?
Over the past 5 years, Apple Inc. (AAPL) delivered a total return of +110.5%, compared to +100.7% for Merck & Co., Inc. (MRK). A $10,000 investment in AAPL five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AAPL returned +1027% versus MRK's +210.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MRK or AAPL?
By beta (market sensitivity over 5 years), Merck & Co., Inc. (MRK) is the lower-risk stock at 0.43β versus Apple Inc.'s 1.28β — meaning AAPL is approximately 197% more volatile than MRK relative to the S&P 500.
05Which has better profit margins — MRK or AAPL?
Merck & Co., Inc. (MRK) is the more profitable company, earning 28.1% net margin versus 26.9% for Apple Inc. — meaning it keeps 28.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MRK leads at 41.2% versus 32.0% for AAPL. At the gross margin level — before operating expenses — MRK leads at 81.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is MRK or AAPL more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Merck & Co., Inc. (MRK) is the more undervalued stock at a PEG of 1.13x versus Apple Inc.'s 1.74x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Merck & Co., Inc. (MRK) trades at 24.0x forward P/E versus 31.1x for Apple Inc. — 7.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AAPL: 14.7% to $303.11.
07Which pays a better dividend — MRK or AAPL?
In this comparison, AAPL (0.4% yield) pays a dividend. MRK does not pay a meaningful dividend and should not be held primarily for income.
08Is MRK or AAPL better for a retirement portfolio?
For long-horizon retirement investors, Merck & Co., Inc. (MRK) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.43), +210.2% 10Y return). Both have compounded well over 10 years (MRK: +210.2%, AAPL: +1027%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between MRK and AAPL?
These companies operate in different sectors (MRK (Healthcare) and AAPL (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. In terms of investment character: MRK is a large-cap deep-value stock; AAPL is a mega-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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