Comprehensive Stock Comparison
Compare Merck & Co., Inc. (MRK) vs Pfizer Inc. (PFE) 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 | MRK | 1.3% revenue growth vs PFE's -1.6% |
| Value | PFE | Lower P/E (9.4x vs 24.0x) |
| Quality / Margins | MRK | 28.1% net margin vs PFE's 12.4% |
| Stability / Safety | MRK | Beta 0.43 vs PFE's 0.50 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | MRK | +37.7% vs PFE's +11.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
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.
Pfizer is a global biopharmaceutical company that discovers, develops, and commercializes innovative medicines and vaccines across multiple therapeutic areas. It generates revenue primarily from pharmaceutical product sales — including blockbuster drugs like Eliquis, Prevnar, and Comirnaty — with vaccines contributing roughly 25% of total revenue. The company's competitive advantage lies in its massive R&D scale, extensive global manufacturing capabilities, and deep expertise in developing complex biologics and vaccines.
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
MRK leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). PFE leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
MRK and PFE operate at a comparable scale, with $65.0B and $62.6B in trailing revenue. MRK is the more profitable business, keeping 28.1% of every revenue dollar as net income compared to PFE's 12.4%. On growth, MRK holds the edge at +5.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MRKMerck & Co., Inc. | PFEPfizer Inc. |
|---|---|---|
| RevenueTrailing 12 months | $65.0B | $62.6B |
| EBITDAEarnings before interest/tax | $31.1B | $15.7B |
| Net IncomeAfter-tax profit | $18.3B | $7.8B |
| Free Cash FlowCash after capex | $10.5B | $4.6B |
| Gross MarginGross profit ÷ Revenue | +81.5% | +70.3% |
| Operating MarginEBIT ÷ Revenue | +41.2% | +24.7% |
| Net MarginNet income ÷ Revenue | +28.1% | +12.4% |
| FCF MarginFCF ÷ Revenue | +16.2% | +7.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.0% | -1.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -19.6% | -5.0% |
Valuation Metrics
At 17.0x trailing earnings, MRK trades at a 16% valuation discount to PFE's 20.3x P/E. On an enterprise value basis, PFE's 7.7x EV/EBITDA is more attractive than MRK's 9.9x.
| Metric | MRKMerck & Co., Inc. | PFEPfizer Inc. |
|---|---|---|
| Market CapShares × price | $307.2B | $157.2B |
| Enterprise ValueMkt cap + debt − cash | $307.2B | $157.2B |
| Trailing P/EPrice ÷ TTM EPS | 17.00x | 20.33x |
| Forward P/EPrice ÷ next-FY EPS est. | 24.05x | 9.35x |
| PEG RatioP/E ÷ EPS growth rate | 0.80x | — |
| EV / EBITDAEnterprise value multiple | 9.89x | 7.73x |
| Price / SalesMarket cap ÷ Revenue | 4.73x | 2.51x |
| Price / BookPrice ÷ Book value/share | 5.98x | 1.69x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
MRK delivers a 35.2% return on equity — every $100 of shareholder capital generates $35 in annual profit, vs $8 for PFE.
| Metric | MRKMerck & Co., Inc. | PFEPfizer Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +35.2% | +8.3% |
| ROA (TTM)Return on assets | — | — |
| ROICReturn on invested capital | +32.6% | +9.4% |
| ROCEReturn on capital employed | — | — |
| Piotroski ScoreFundamental quality 0–9 | 2 | 2 |
| Debt / EquityFinancial leverage | — | — |
| Net DebtTotal debt minus cash | $0 | $0 |
| Cash & Equiv.Liquid assets | — | — |
| Total DebtShort + long-term debt | $0 | $0 |
| Interest CoverageEBIT ÷ Interest expense | 25.93x | 3.82x |
Total Returns (with DRIP)
A $10,000 investment in MRK five years ago would be worth $20,074 today (with dividends reinvested), compared to $10,653 for PFE. Over the past 12 months, MRK leads with a +37.7% total return vs PFE's +11.1%. The 3-year compound annual growth rate (CAGR) favors MRK at 7.8% vs PFE's -6.9% — a key indicator of consistent wealth creation.
| Metric | MRKMerck & Co., Inc. | PFEPfizer Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +16.3% | +11.5% |
| 1-Year ReturnPast 12 months | +37.7% | +11.1% |
| 3-Year ReturnCumulative with dividends | +25.3% | -19.4% |
| 5-Year ReturnCumulative with dividends | +100.7% | +6.5% |
| 10-Year ReturnCumulative with dividends | +210.2% | +51.9% |
| CAGR (3Y)Annualised 3-year return | +7.8% | -6.9% |
Risk & Volatility
MRK is the less volatile stock with a 0.43 beta — it tends to amplify market swings less than PFE's 0.50 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | MRKMerck & Co., Inc. | PFEPfizer Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.43x | 0.50x |
| 52-Week HighHighest price in past year | $125.14 | $27.94 |
| 52-Week LowLowest price in past year | $73.31 | $20.92 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 56.0 | 54.7 |
| Avg Volume (50D)Average daily shares traded | 10.8M | 40.1M |
Analyst Outlook
Wall Street rates MRK as "Buy" and PFE as "Hold". Consensus price targets imply 0.1% upside for MRK (target: $124) vs -1.0% for PFE (target: $27).
| Metric | MRKMerck & Co., Inc. | PFEPfizer Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $123.92 | $27.36 |
| # AnalystsCovering analysts | 36 | 37 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 13 | 14 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
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% |
| Pfizer Inc. (PFE) | 100 | 84.15 | -15.8% |
Merck & Co., Inc. (MRK) returned +101% over 5 years vs Pfizer Inc. (PFE)'s +7%. A $10,000 investment in MRK 5 years ago would be worth $20,074 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | $39.8B | $65.0B | +63.3% |
| Pfizer Inc. (PFE) | $52.8B | $62.6B | +18.5% |
Merck & Co., Inc.'s revenue grew from $39.8B (2016) to $65.0B (2025) — a 5.6% CAGR. Pfizer Inc.'s revenue grew from $52.8B (2016) to $62.6B (2025) — a 1.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 9.8% | 28.1% | +185.1% |
| Pfizer Inc. (PFE) | 13.7% | 12.4% | -9.1% |
Merck & Co., Inc.'s net margin went from 10% (2016) to 28% (2025). Pfizer Inc.'s net margin went from 14% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 57.7 | 14.5 | -74.9% |
| Pfizer Inc. (PFE) | 9.8 | 18.3 | +86.7% |
Merck & Co., Inc. has traded in a 15x–58x P/E range over 8 years; current trailing P/E is ~17x. Pfizer Inc. has traded in a 9x–78x P/E range over 9 years; current trailing P/E is ~20x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Merck & Co., Inc. (MRK) | 2.04 | 7.28 | +256.9% |
| Pfizer Inc. (PFE) | 1.17 | 1.36 | +16.2% |
Merck & Co., Inc.'s EPS grew from $2.04 (2016) to $7.28 (2025) — a 15% CAGR. Pfizer Inc.'s EPS grew from $1.17 (2016) to $1.36 (2025) — a 2% CAGR.
Chart 6Free Cash Flow — 5 Years
Merck & Co., Inc. generated $0M FCF in 2025 (-100% vs 2021). Pfizer Inc. generated $0M FCF in 2025 (-100% vs 2021).
MRK vs PFE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MRK or PFE 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 PFE?
On trailing P/E, Merck & Co., Inc. (MRK) is the cheapest at 17.0x versus Pfizer Inc. at 20.3x. On forward P/E, Pfizer Inc. is actually cheaper at 9.4x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — MRK or PFE?
Over the past 5 years, Merck & Co., Inc. (MRK) delivered a total return of +100.7%, compared to +6.5% for Pfizer Inc. (PFE). A $10,000 investment in MRK five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MRK returned +210.2% versus PFE's +51.9%. 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 PFE?
By beta (market sensitivity over 5 years), Merck & Co., Inc. (MRK) is the lower-risk stock at 0.43β versus Pfizer Inc.'s 0.50β — meaning PFE is approximately 17% more volatile than MRK relative to the S&P 500.
05Which has better profit margins — MRK or PFE?
Merck & Co., Inc. (MRK) is the more profitable company, earning 28.1% net margin versus 12.4% for Pfizer 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 24.7% for PFE. 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 PFE more undervalued right now?
On forward earnings alone, Pfizer Inc. (PFE) trades at 9.4x forward P/E versus 24.0x for Merck & Co., Inc. — 14.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MRK: 0.1% to $123.92.
07Which pays a better dividend — MRK or PFE?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is MRK or PFE 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%, PFE: +51.9%), 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 PFE?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: MRK is a large-cap deep-value stock; PFE is a mid-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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