Comprehensive Stock Comparison
Compare Pfizer Inc. (PFE) vs Merck & Co., Inc. (MRK) 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
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.
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.
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 | PFEPfizer Inc. | MRKMerck & Co., Inc. |
|---|---|---|
| RevenueTrailing 12 months | $62.6B | $65.0B |
| EBITDAEarnings before interest/tax | $15.7B | $31.1B |
| Net IncomeAfter-tax profit | $7.8B | $18.3B |
| Free Cash FlowCash after capex | $4.6B | $10.5B |
| Gross MarginGross profit ÷ Revenue | +70.3% | +81.5% |
| Operating MarginEBIT ÷ Revenue | +24.7% | +41.2% |
| Net MarginNet income ÷ Revenue | +12.4% | +28.1% |
| FCF MarginFCF ÷ Revenue | +7.3% | +16.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.2% | +5.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -5.0% | -19.6% |
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 | PFEPfizer Inc. | MRKMerck & Co., Inc. |
|---|---|---|
| Market CapShares × price | $157.2B | $307.2B |
| Enterprise ValueMkt cap + debt − cash | $157.2B | $307.2B |
| Trailing P/EPrice ÷ TTM EPS | 20.33x | 17.00x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.35x | 24.05x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.80x |
| EV / EBITDAEnterprise value multiple | 7.73x | 9.89x |
| Price / SalesMarket cap ÷ Revenue | 2.51x | 4.73x |
| Price / BookPrice ÷ Book value/share | 1.69x | 5.98x |
| 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 | PFEPfizer Inc. | MRKMerck & Co., Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.3% | +35.2% |
| ROA (TTM)Return on assets | — | — |
| ROICReturn on invested capital | +9.4% | +32.6% |
| 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 | 3.82x | 25.93x |
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 | PFEPfizer Inc. | MRKMerck & Co., Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +11.5% | +16.3% |
| 1-Year ReturnPast 12 months | +11.1% | +37.7% |
| 3-Year ReturnCumulative with dividends | -19.4% | +25.3% |
| 5-Year ReturnCumulative with dividends | +6.5% | +100.7% |
| 10-Year ReturnCumulative with dividends | +51.9% | +210.2% |
| CAGR (3Y)Annualised 3-year return | -6.9% | +7.8% |
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 | PFEPfizer Inc. | MRKMerck & Co., Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.50x | 0.43x |
| 52-Week HighHighest price in past year | $27.94 | $125.14 |
| 52-Week LowLowest price in past year | $20.92 | $73.31 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +98.9% |
| RSI (14)Momentum oscillator 0–100 | 54.7 | 56.0 |
| Avg Volume (50D)Average daily shares traded | 40.1M | 10.8M |
Analyst Outlook
Wall Street rates PFE as "Hold" and MRK as "Buy". Consensus price targets imply 0.1% upside for MRK (target: $124) vs -1.0% for PFE (target: $27).
| Metric | PFEPfizer Inc. | MRKMerck & Co., Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $27.36 | $123.92 |
| # AnalystsCovering analysts | 37 | 36 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 14 | 13 |
| 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 | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 100 | 80.64 | -19.4% |
| Merck & Co., Inc. (MRK) | 100 | 146.11 | +46.1% |
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 |
|---|---|---|---|
| Pfizer Inc. (PFE) | $52.8B | $62.6B | +18.5% |
| Merck & Co., Inc. (MRK) | $39.8B | $65.0B | +63.3% |
Pfizer Inc.'s revenue grew from $52.8B (2016) to $62.6B (2025) — a 1.9% CAGR. Merck & Co., Inc.'s revenue grew from $39.8B (2016) to $65.0B (2025) — a 5.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 13.7% | 12.4% | -9.1% |
| Merck & Co., Inc. (MRK) | 9.8% | 28.1% | +185.1% |
Pfizer Inc.'s net margin went from 14% (2016) to 12% (2025). Merck & Co., Inc.'s net margin went from 10% (2016) to 28% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 9.8 | 18.3 | +86.7% |
| Merck & Co., Inc. (MRK) | 57.7 | 14.5 | -74.9% |
Pfizer Inc. has traded in a 9x–78x P/E range over 9 years; current trailing P/E is ~20x. Merck & Co., Inc. has traded in a 15x–58x P/E range over 8 years; current trailing P/E is ~17x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 1.17 | 1.36 | +16.2% |
| Merck & Co., Inc. (MRK) | 2.04 | 7.28 | +256.9% |
Pfizer Inc.'s EPS grew from $1.17 (2016) to $1.36 (2025) — a 2% CAGR. Merck & Co., Inc.'s EPS grew from $2.04 (2016) to $7.28 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Pfizer Inc. generated $0M FCF in 2025 (-100% vs 2021). Merck & Co., Inc. generated $0M FCF in 2025 (-100% vs 2021).
PFE vs MRK: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PFE or MRK 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 — PFE or MRK?
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 — PFE or MRK?
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 — PFE or MRK?
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 — PFE or MRK?
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 PFE or MRK 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 — PFE or MRK?
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 PFE or MRK 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 PFE and MRK?
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: PFE is a mid-cap quality compounder stock; MRK is a large-cap deep-value 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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