Broadcom Inc. (AVGO) vs Merck & Co., Inc. (MRK)
MRK leads on 9 of 17 compared metrics.
A side-by-side comparison of Broadcom Inc. and Merck & Co., Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
Total return — AVGO vs MRK
growth of $100 · last 17yAVGO +23484.6%MRK +321.7%AVGO compounded faster
Log scale — wide-divergence pair
AVGO MRK
AVGO vs MRK: by the numbers
- •AVGO is the larger company ($1.82T vs $294.03B market cap).
- •MRK trades at the lower earnings multiple (33.54 vs 63.68 P/E).
- •AVGO converts more revenue to profit (38.85% vs 13.62% net margin).
- •AVGO grew revenue faster over the past five years (24.17% vs 8.60% CAGR).
- •MRK pays the higher dividend yield (3.50% vs 0.65%).
Which is better, AVGO or MRK?
Metric tally: AVGO 8 · MRK 9It depends on what you're optimizing for:
ValueMRK(lower P/E)
GrowthAVGO(faster 5Y revenue CAGR)
IncomeMRK(higher dividend yield)
QualityMRK(higher ROIC)
Metrics side by side
Valuation
| Metric | AVGO | MRK |
|---|---|---|
| P/E ratio | 63.68 | 33.54● |
| Forward P/E | 19.68 | 12.35● |
| P/S ratio | 24.69 | 4.49● |
| P/B ratio | 21.24 | 6.41● |
| PEG ratio | 0.26● | 1.81 |
| EV / EBITDA | 45.41 | 19.58● |
| FCF yield | 1.76% | 4.80%● |
Profitability
| Metric | AVGO | MRK |
|---|---|---|
| Gross margin | 66.96% | 75.91%● |
| Operating margin | 43.66%● | 27.59% |
| Net margin | 38.85%● | 13.62% |
| ROE | 33.43%● | 19.48% |
| ROIC | 16.36% | 18.27%● |
Dividends
| Metric | AVGO | MRK |
|---|---|---|
| Dividend yield | 0.65% | 3.50%● |
| Payout ratio | 50.51% | 57.12% |
Growth (annualized)
| Metric | AVGO | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 24.17%● | 8.60% |
| EPS CAGR (5Y) | 49.36%● | 21.21% |
| FCF CAGR (5Y) | 20.74%● | 15.69% |
| Total return CAGR (5Y) | 55.05%● | 12.79% |
Frequently asked
- Which is better, AVGO or MRK?
- It depends on your goal. value: MRK (lower P/E); growth: AVGO (faster 5Y revenue CAGR); income: MRK (higher dividend yield); quality: MRK (higher ROIC). Across all compared metrics, MRK leads 9 to 8.
- Is AVGO or MRK cheaper?
- On trailing earnings, MRK is cheaper: AVGO trades at a 63.68 P/E and MRK at 33.54.
- Which has grown faster, AVGO or MRK?
- Over the past five years, AVGO grew revenue faster — AVGO at a 24.17% CAGR versus MRK at 8.60%.
- Does AVGO or MRK pay a bigger dividend?
- AVGO yields 0.65% and MRK yields 3.50% based on trailing dividends and the latest price.
- Is AVGO or MRK more profitable?
- AVGO runs the higher net margin — AVGO at 38.85% versus MRK at 13.62%.
- Which has been the better investment, AVGO or MRK?
- Over the past 10-year, AVGO delivered the higher annualized total return — AVGO at 40.78% versus MRK at 11.57%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Broadcom P/E ratioMerck & P/E ratioBroadcom dividend yieldMerck & dividend yieldBroadcom ROEMerck & ROEBroadcom operating marginMerck & operating marginBroadcom revenue growthMerck & revenue growthBroadcom free cash flowMerck & free cash flow
Broadcom & Merck & appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.