After MRK’s 6.8% Climb in a Day, INVA Looks Like the Stronger Long-Term Play
Innoviva (INVA) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Merck (MRK), suggesting you may be better off investing in INVA
- INVA’s quarterly revenue growth was 0.4%, vs. MRK’s -1.9%.
- In addition, its Last 12 Months revenue growth came in at 12.0%, ahead of MRK’s 1.8%.
- INVA leads on profitability over both periods – LTM margin of 47.7% and 3-year average of 41.7%.
MRK operates in pharmaceuticals and animal health, providing human medicines for various diseases and veterinary pharmaceuticals, vaccines, and health management solutions. INVA develops and commercializes pharmaceuticals, specializing in long-acting beta2 agonist therapies for chronic obstructive pulmonary disease and asthma through collaboration with Glaxo Group.
Valuation & Performance Overview
| MRK | INVA | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 10.6 | 6.5 | INVA |
| Revenue Growth | |||
| Last Quarter | -1.9% | 0.4% | INVA |
| Last 12 Months | 1.8% | 12.0% | INVA |
| Last 3 Year Average | 3.7% | -0.8% | MRK |
| Operating Margins | |||
| Last 12 Months | 31.2% | 47.7% | INVA |
| Last 3 Year Average | 22.6% | 41.7% | INVA |
| Momentum | |||
| Last 3 Year Return | 6.6% | 57.2% | INVA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: MRK Revenue Comparison | INVA Revenue Comparison
See more margin details: MRK Operating Income Comparison | INVA Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell INVA Stock to see if Innoviva’s edge holds up under the hood or if Merck still has cards to play (see Buy or Sell MRK Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| MRK Return | -7% | 2% | 49% | 1% | -6% | -13% | 8% | ||
| INVA Return | -12% | 39% | -23% | 21% | 8% | 5% | 33% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 106% | <=== | |
| Monthly Win Rates [3] | |||||||||
| MRK Win Rate | 58% | 42% | 67% | 42% | 33% | 25% | 44% | ||
| INVA Win Rate | 33% | 58% | 33% | 50% | 50% | 75% | 50% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| MRK Max Drawdown | -26% | -12% | -4% | -8% | -10% | -26% | -14% | ||
| INVA Max Drawdown | -43% | -11% | -33% | -19% | -10% | -1% | -19% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/30/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read INVA Dip Buyer Analyses to see how the stock has fallen and recovered in the past.