Broadcom Inc. (AVGO) vs Merck & Co., Inc. (MRK)
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 September 10, 2026. Differences are shown without an overall score or investment verdict.
Different business models: AVGO is classified in Technology; MRK is classified in Healthcare. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
AVGO
Broadcom Inc.
$361.99TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
MRK
Merck & Co., Inc.
$143.94HealthcareDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — AVGO vs MRK
growth of $100 · dividends reinvested · last 10yAVGO +2580.2% (+38.9%/yr)MRK +226.1% (+12.5%/yr)AVGO compounded faster over this window
Log scale — wide-divergence pair
AVGO MRK
AVGO vs MRK: by the numbers
- •AVGO is the larger company ($1.72T vs $355.49B market cap).
- •AVGO trades at the lower trailing earnings multiple (46.23 vs 115.15 P/E), one valuation lens rather than an overall verdict.
- •AVGO converts more revenue to profit (42.94% vs 4.78% net margin).
- •AVGO grew revenue faster over the past five years (27.42% vs 7.87% CAGR).
- •MRK pays the higher dividend yield (2.32% vs 0.70%).
Metrics side by side
Valuation
| Metric | AVGO | MRK |
|---|---|---|
| P/E ratio | 46.23 | 115.15 |
| Forward P/E | 31.17 | 52.41 |
| P/S ratio | 19.33 | 5.35 |
| P/B ratio | 17.28 | 8.48 |
| EV / EBITDA | 33.95 | 22.76 |
| FCF yield | 2.29% | 4.52% |
Profitability
| Metric | AVGO | MRK |
|---|---|---|
| Gross margin | 67.66% | 75.38% |
| Operating margin | 39.89% | 36.17% |
| Net margin | 42.94% | 4.78% |
| ROE | 38.38% | 7.57% |
| ROIC | 23.99% | 5.80% |
Dividends
| Metric | AVGO | MRK |
|---|---|---|
| Dividend yield | 0.70% | 2.32% |
| Payout ratio | 32.44% | 268.80% |
Growth (annualized)
| Metric | AVGO | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 27.42% | 7.87% |
| EPS CAGR (5Y) | 49.36% | 21.21% |
| FCF CAGR (5Y) | 24.60% | 23.61% |
| Total return CAGR (5Y) | 51.41% | 18.15% |
Frequently asked
- Which has the lower trailing P/E, AVGO or MRK?
- AVGO has the lower trailing P/E: AVGO trades at 46.23 and MRK at 115.15. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, AVGO or MRK?
- Over the past five years, AVGO grew revenue faster — AVGO at a 27.42% CAGR versus MRK at 7.87%.
- Does AVGO or MRK pay a bigger dividend?
- AVGO yields 0.70% and MRK yields 2.32% based on trailing dividends and the latest price.
- Is AVGO or MRK more profitable?
- AVGO runs the higher net margin — AVGO at 42.94% versus MRK at 4.78%.
- How have AVGO and MRK total returns compared?
- Over the past 10 years, AVGO delivered 39.97% and MRK delivered 12.68% annualized total return. 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 September 10, 2026.