Drug Manufacturers - Specialty & Generic
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VTRS vs MRK
Revenue, margins, valuation, and 5-year total return — side by side.
Drug Manufacturers - General
VTRS vs MRK — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Drug Manufacturers - General |
| Market Cap | $20.25B | $277.34B |
| Revenue (TTM) | $14.56B | $64.93B |
| Net Income (TTM) | $-296M | $18.25B |
| Gross Margin | 34.4% | 74.2% |
| Operating Margin | 1.0% | 41.1% |
| Forward P/E | 7.1x | 21.9x |
| Total Debt | $14.70B | $50.53B |
| Cash & Equiv. | $1.35B | $14.56B |
VTRS vs MRK — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Viatris Inc. (VTRS) | 100 | 101.9 | +1.9% |
| Merck & Co., Inc. (MRK) | 100 | 145.9 | +45.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VTRS vs MRK
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VTRS is the clearest fit if your priority is value and momentum.
- Lower P/E (7.1x vs 21.9x)
- +107.8% vs MRK's +46.1%
MRK carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 14 yrs, beta 0.48, yield 2.9%
- Rev growth 1.2%, EPS growth 8.0%, 3Y rev CAGR 3.1%
- 166.5% 10Y total return vs VTRS's -51.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 1.2% revenue growth vs VTRS's -3.0% | |
| Value | Lower P/E (7.1x vs 21.9x) | |
| Quality / Margins | 28.1% margin vs VTRS's -2.0% | |
| Stability / Safety | Beta 0.48 vs VTRS's 0.99, lower leverage | |
| Dividends | 2.9% yield, 14-year raise streak, vs VTRS's 2.8% | |
| Momentum (1Y) | +107.8% vs MRK's +46.1% | |
| Efficiency (ROA) | 14.6% ROA vs VTRS's -0.8%, ROIC 22.0% vs -6.6% |
VTRS vs MRK — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
VTRS vs MRK — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
MRK leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MRK is the larger business by revenue, generating $64.9B annually — 4.5x VTRS's $14.6B. MRK is the more profitable business, keeping 28.1% of every revenue dollar as net income compared to VTRS's -2.0%. On growth, VTRS holds the edge at +8.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $14.6B | $64.9B |
| EBITDAEarnings before interest/tax | $2.3B | $32.4B |
| Net IncomeAfter-tax profit | -$296M | $18.3B |
| Free Cash FlowCash after capex | $1.7B | $12.4B |
| Gross MarginGross profit ÷ Revenue | +34.4% | +74.2% |
| Operating MarginEBIT ÷ Revenue | +1.0% | +41.1% |
| Net MarginNet income ÷ Revenue | -2.0% | +28.1% |
| FCF MarginFCF ÷ Revenue | +11.7% | +19.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.1% | +4.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +105.9% | -19.6% |
Valuation Metrics
VTRS leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, MRK's 10.7x EV/EBITDA is more attractive than VTRS's 248.5x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $20.2B | $277.3B |
| Enterprise ValueMkt cap + debt − cash | $33.6B | $313.3B |
| Trailing P/EPrice ÷ TTM EPS | -5.80x | 15.42x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.12x | 21.93x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.73x |
| EV / EBITDAEnterprise value multiple | 248.54x | 10.68x |
| Price / SalesMarket cap ÷ Revenue | 1.42x | 4.27x |
| Price / BookPrice ÷ Book value/share | 1.38x | 5.35x |
| Price / FCFMarket cap ÷ FCF | 10.45x | 22.44x |
Profitability & Efficiency
MRK leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
MRK delivers a 36.1% return on equity — every $100 of shareholder capital generates $36 in annual profit, vs $-2 for VTRS. MRK carries lower financial leverage with a 0.96x debt-to-equity ratio, signaling a more conservative balance sheet compared to VTRS's 1.00x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -2.0% | +36.1% |
| ROA (TTM)Return on assets | -0.8% | +14.6% |
| ROICReturn on invested capital | -6.6% | +22.0% |
| ROCEReturn on capital employed | -8.1% | +23.8% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.00x | 0.96x |
| Net DebtTotal debt minus cash | $13.4B | $36.0B |
| Cash & Equiv.Liquid assets | $1.3B | $14.6B |
| Total DebtShort + long-term debt | $14.7B | $50.5B |
| Interest CoverageEBIT ÷ Interest expense | -0.51x | 19.68x |
Total Returns (Dividends Reinvested)
VTRS leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MRK five years ago would be worth $17,024 today (with dividends reinvested), compared to $14,034 for VTRS. Over the past 12 months, VTRS leads with a +107.8% total return vs MRK's +46.1%. The 3-year compound annual growth rate (CAGR) favors VTRS at 24.2% vs MRK's 0.9% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +40.5% | +6.3% |
| 1-Year ReturnPast 12 months | +107.8% | +46.1% |
| 3-Year ReturnCumulative with dividends | +91.8% | +2.9% |
| 5-Year ReturnCumulative with dividends | +40.3% | +70.2% |
| 10-Year ReturnCumulative with dividends | -51.5% | +166.5% |
| CAGR (3Y)Annualised 3-year return | +24.2% | +0.9% |
Risk & Volatility
Evenly matched — VTRS and MRK each lead in 1 of 2 comparable metrics.
Risk & Volatility
MRK is the less volatile stock with a 0.48 beta — it tends to amplify market swings less than VTRS's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VTRS currently trades 99.7% from its 52-week high vs MRK's 89.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 0.48x |
| 52-Week HighHighest price in past year | $17.45 | $125.14 |
| 52-Week LowLowest price in past year | $8.19 | $73.31 |
| % of 52W HighCurrent price vs 52-week peak | +99.7% | +89.7% |
| RSI (14)Momentum oscillator 0–100 | 75.7 | 46.7 |
| Avg Volume (50D)Average daily shares traded | 10.6M | 7.3M |
Analyst Outlook
MRK leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates VTRS as "Hold" and MRK as "Buy". Consensus price targets imply 15.2% upside for MRK (target: $129) vs -12.3% for VTRS (target: $15). For income investors, MRK offers the higher dividend yield at 2.90% vs VTRS's 2.76%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $15.25 | $129.31 |
| # AnalystsCovering analysts | 12 | 37 |
| Dividend YieldAnnual dividend ÷ price | +2.8% | +2.9% |
| Dividend StreakConsecutive years of raises | 0 | 14 |
| Dividend / ShareAnnual DPS | $0.48 | $3.26 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.5% | +1.8% |
MRK leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). VTRS leads in 2 (Valuation Metrics, Total Returns). 1 tied.
VTRS vs MRK: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is VTRS or MRK a better buy right now?
For growth investors, Merck & Co.
, Inc. (MRK) is the stronger pick with 1. 2% revenue growth year-over-year, versus -3. 0% for Viatris Inc. (VTRS). Merck & Co. , Inc. (MRK) offers the better valuation at 15. 4x trailing P/E (21. 9x forward), making it the more compelling value choice. Analysts rate Merck & Co. , Inc. (MRK) a "Buy" — based on 37 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 — VTRS or MRK?
On forward P/E, Viatris Inc.
is actually cheaper at 7. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — VTRS or MRK?
Over the past 5 years, Merck & Co.
, Inc. (MRK) delivered a total return of +70. 2%, compared to +40. 3% for Viatris Inc. (VTRS). Over 10 years, the gap is even starker: MRK returned +166. 5% versus VTRS's -51. 5%. 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 — VTRS or MRK?
By beta (market sensitivity over 5 years), Merck & Co.
, Inc. (MRK) is the lower-risk stock at 0. 48β versus Viatris Inc. 's 0. 99β — meaning VTRS is approximately 109% more volatile than MRK relative to the S&P 500. On balance sheet safety, Merck & Co. , Inc. (MRK) carries a lower debt/equity ratio of 96% versus 100% for Viatris Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — VTRS or MRK?
By revenue growth (latest reported year), Merck & Co.
, Inc. (MRK) is pulling ahead at 1. 2% versus -3. 0% for Viatris Inc. (VTRS). On earnings-per-share growth, the picture is similar: Merck & Co. , Inc. grew EPS 8. 0% year-over-year, compared to -466. 0% for Viatris Inc.. Over a 3-year CAGR, MRK leads at 3. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — VTRS or MRK?
Merck & Co.
, Inc. (MRK) is the more profitable company, earning 28. 1% net margin versus -24. 6% for Viatris Inc. — meaning it keeps 28. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MRK leads at 36. 2% versus -18. 6% for VTRS. At the gross margin level — before operating expenses — MRK leads at 72. 0%, 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.
07Is VTRS or MRK more undervalued right now?
On forward earnings alone, Viatris Inc.
(VTRS) trades at 7. 1x forward P/E versus 21. 9x for Merck & Co. , Inc. — 14. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MRK: 15. 2% to $129. 31.
08Which pays a better dividend — VTRS or MRK?
All stocks in this comparison pay dividends.
Merck & Co. , Inc. (MRK) offers the highest yield at 2. 9%, versus 2. 8% for Viatris Inc. (VTRS).
09Is VTRS 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. 48), 2. 9% yield, +166. 5% 10Y return). Both have compounded well over 10 years (MRK: +166. 5%, VTRS: -51. 5%), 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.
10What are the main differences between VTRS 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: VTRS 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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