Merck & Co., Inc. vs Novartis AG, two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Growth is invisible on this page and the multiples argue about it anyway: Merck at 36.2 times earnings carries fifteen turns over Novartis' 21.5, the market paying up for Keytruda's franchise and pipeline against the steadier Swiss estate. Current economics side with Novartis on every line: a 25.6% net margin against 13.6%, 30% returns on equity against 19.4% (Novartis unlevered, Merck carrying 1.07 turns), a 5.8% free-cash yield against 4.5%. Merck's 2.6% dividend edges nothing visible on Novartis' page. Two big pharmas priced for different decades, the premium on the one whose defining drug has a known expiration; conviction about pipelines rarely costs this much against arithmetic.
Comparison updated 2026-07-10.
| Metric | MRK | NVS |
|---|---|---|
| Price | $128.37 | $155.27 |
| Market cap | $317.3B | $301.1B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +8.3% |
| P/E | 36.2 | 21.5 |
| P/B | 6.91 | 6.47 |
| P/S | 4.83 | 5.52 |
| EV/EBITDA | 621.5 | 16.4 |
| Revenue growth | +2.9% | +6.4% |
| Gross margin | — | 78.8% |
| Operating margin | — | 32.4% |
| Net margin | 13.6% | 25.6% |
| Return on equity | 19.4% | 30.0% |
| Return on assets | 6.9% | 12.6% |
| Return on invested capital | — | 32.4% |
| FCF yield | 4.5% | 5.8% |
| Dividend yield | 2.6% | — |
| Debt / equity | 1.07 | 0.00 |
| Current ratio | 1.30 | 1.12 |
| Altman Z (solvency) | 7.31 | 3.86 |
| Piotroski F (quality) | 6 / 9 | 8 / 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.