Costco Wholesale Corporation (COST) vs Merck & Co., Inc. (MRK)
A side-by-side comparison of Costco Wholesale Corporation and Merck & Co., Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
Different business models: COST is classified in Consumer Defensive; MRK is classified in Healthcare. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
COST
Costco Wholesale Corporation
$966.58Consumer DefensiveDelayed quote: Jul 28, 2026, 4:00 PM EDT
MRK
Merck & Co., Inc.
$131.84HealthcareDelayed quote: Jul 28, 2026, 3:59 PM EDT
Total return — COST vs MRK
growth of $100 · dividends reinvested · last 30yCOST +11175.1%MRK +990.2%COST compounded faster
Log scale — wide-divergence pair
COST MRK
COST vs MRK: by the numbers
- •COST is the larger company ($428.66B vs $325.61B market cap).
- •MRK trades at the lower trailing earnings multiple (36.83 vs 47.87 P/E), one valuation lens rather than an overall verdict.
- •MRK converts more revenue to profit (13.62% vs 3.01% net margin).
- •COST grew revenue faster over the past five years (9.48% vs 8.60% CAGR).
- •MRK pays the higher dividend yield (2.57% vs 0.56%).
Metrics side by side
Valuation
| Metric | COST | MRK |
|---|---|---|
| P/E ratio | 47.87 | 36.83 |
| Forward P/E | 46.33 | 47.09 |
| P/S ratio | 1.44 | 4.93 |
| P/B ratio | 12.62 | 7.05 |
| PEG ratio | 5.23 | 1.81 |
| EV / EBITDA | 29.89 | 15.16 |
| FCF yield | 2.08% | 4.37% |
Profitability
| Metric | COST | MRK |
|---|---|---|
| Gross margin | 12.88% | 75.91% |
| Operating margin | 3.82% | 36.17% |
| Net margin | 3.01% | 13.62% |
| ROE | 26.38% | 19.48% |
| ROIC | 19.44% | 18.27% |
Dividends
| Metric | COST | MRK |
|---|---|---|
| Dividend yield | 0.56% | 2.57% |
| Payout ratio | 29.44% | 46.03% |
Growth (annualized)
| Metric | COST | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 9.48% | 8.60% |
| EPS CAGR (5Y) | 15.04% | 21.21% |
| FCF CAGR (5Y) | 4.95% | 15.69% |
| Total return CAGR (5Y) | 18.31% | 14.44% |
Frequently asked
- Which has the lower trailing P/E, COST or MRK?
- MRK has the lower trailing P/E: COST trades at 47.87 and MRK at 36.83. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, COST or MRK?
- Over the past five years, COST grew revenue faster — COST at a 9.48% CAGR versus MRK at 8.60%.
- Does COST or MRK pay a bigger dividend?
- COST yields 0.56% and MRK yields 2.57% based on trailing dividends and the latest price.
- Is COST or MRK more profitable?
- MRK runs the higher net margin — COST at 3.01% versus MRK at 13.62%.
- How have COST and MRK total returns compared?
- Over the past 10 years, COST delivered 20.06% and MRK delivered 12.27% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Costco Wholesale P/E ratioMerck & P/E ratioCostco Wholesale dividend yieldMerck & dividend yieldCostco Wholesale ROEMerck & ROECostco Wholesale operating marginMerck & operating marginCostco Wholesale revenue growthMerck & revenue growthCostco Wholesale free cash flowMerck & free cash flow
Costco Wholesale & 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 July 28, 2026.