ABBOTT LABORATORIES vs Merck & Co., Inc., two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Abbott and Merck both file under drug makers, but Merck is the pure-play pharma and Abbott the diversified device-and-diagnostics company. Their net margins are nearly tied, around 14% each, while Merck earns the higher return on equity, 19% to Abbott's 12. Abbott is the cheaper stock, near 25 times earnings to Merck's 32, and the dividends sit close at 2.7%. Merck's appeal is current pharma profitability with the patent-cliff risk that comes attached; Abbott's is steadier, less patent-dependent growth, and for once the steadier one carries the lower multiple.
Comparison updated 2026-06-15.
| Metric | ABT | MRK |
|---|---|---|
| Price | $93.93 | $123.48 |
| Market cap | $164.1B | $305.2B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | +9.6% | +6.2% |
| P/E | 26.3 | 34.8 |
| P/B | 3.11 | 6.65 |
| P/S | 3.64 | 4.64 |
| EV/EBITDA | 20.8 | 600.7 |
| Revenue growth | +6.6% | +2.9% |
| Operating margin | 12.1% | — |
| Net margin | 13.9% | 13.6% |
| Return on equity | 11.9% | 19.4% |
| Return on assets | 5.7% | 6.9% |
| Return on invested capital | 6.6% | — |
| FCF yield | 4.5% | 4.6% |
| Dividend yield | 2.6% | 2.7% |
| Debt / equity | 0.65 | 1.07 |
| Current ratio | 1.39 | 1.30 |
| Altman Z (solvency) | 7.16 | 7.31 |
| Piotroski F (quality) | 6 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.