How Does Merck Stock Stack Up Against Its Peers?
Merck‘s (MRK) stock has delivered solid 11% returns over the past year, outperforming some peers, but how does it truly measure up against its diverse market competitors? A closer look reveals robust profitability and an attractive valuation, with analysts recently upgrading their outlook amidst pipeline strengths. However, its more modest revenue growth and upcoming patent challenges could temper significant upside despite strong market positioning within pharmaceuticals.
- MRK’s 34.9% operating margin leads peers, reflecting pharma’s patent-protected drug pricing power versus tech’s varied hardware/service margins.
- MRK’s 1.7% revenue growth lags peers, affected by Keytruda’s 2028 patent cliff, contrasting with tech’s AI/cloud infrastructure demand.
- MRK’s 11.0% stock gain and 14.0 P/E reflect patent cliff concerns, while HPE, IBM, CSCO saw stronger returns from tech’s growth prospects.
Here’s how Merck stacks up across size, valuation, and profitability versus key peers.
| MRK | HPQ | HPE | IBM | CSCO | AAPL | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 266.0 | 21.4 | 32.4 | 285.5 | 307.7 | 4,079.8 |
| Revenue ($ Bil) | 64.2 | 55.3 | 34.3 | 65.4 | 57.7 | 408.6 |
| PE Ratio | 14.0 | 8.4 | 569.0 | 36.1 | 29.8 | 41.1 |
| LTM Revenue Growth | 1.7% | 3.2% | 13.8% | 4.5% | 8.9% | 6.0% |
| LTM Operating Margin | 34.9% | 6.6% | 4.8% | 17.7% | 22.5% | 31.9% |
| LTM FCF Margin | 20.3% | 5.1% | 1.8% | 18.1% | 22.1% | 23.5% |
| 12M Market Return | 11.0% | -28.7% | 15.4% | 40.8% | 33.9% | 7.6% |
For more details on Merck, read Buy or Sell MRK Stock. Below we compare MRK’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| MRK | 1.7% | – | 6.7% | 1.4% | 21.7% |
| HPQ | 3.2% | 3.2% | -0.3% | -14.6% | |
| HPE | 13.8% | 13.8% | 3.4% | 2.2% | |
| IBM | 4.5% | – | 1.4% | 2.2% | 5.5% |
| CSCO | 8.9% | 5.3% | -5.6% | 10.6% | |
| AAPL | 6.0% | – | 2.0% | -2.8% | 7.8% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| MRK | 34.9% | – | 31.5% | 4.9% | 30.8% |
| HPQ | 6.6% | 6.6% | 7.8% | 7.9% | |
| HPE | 4.8% | 4.8% | 8.3% | 8.4% | |
| IBM | 17.7% | – | 16.1% | 15.9% | 13.5% |
| CSCO | 22.5% | 22.1% | 24.1% | 27.3% | |
| AAPL | 31.9% | – | 31.5% | 29.8% | 30.3% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| MRK | 14.0 | – | 14.7 | 757.8 | 19.3 |
| HPQ | 8.4 | 12.2 | 10.6 | 8.2 | |
| HPE | 569.0 | 495.9 | 8.6 | 10.2 | |
| IBM | 36.1 | – | 33.6 | 19.9 | 77.5 |
| CSCO | 29.8 | 23.1 | 19.8 | 15.5 | |
| AAPL | 41.1 | – | 41.0 | 31.3 | 21.1 |
Still not sure about MRK stock? Consider portfolio approach.
Move Beyond Single Stocks With A Multi Asset Portfolio
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices