The Coca-Cola Company (KO) vs Merck & Co., Inc. (MRK)
A side-by-side comparison of The Coca-Cola Company 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: KO is classified in Consumer Defensive; MRK is classified in Healthcare. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
KO
The Coca-Cola Company
$88.27Consumer 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 — KO vs MRK
growth of $100 · dividends reinvested · last 30yKO +665.6%MRK +990.2%MRK compounded faster
KO MRK
KO vs MRK: by the numbers
- •KO is the larger company ($379.78B vs $325.61B market cap).
- •KO trades at the lower trailing earnings multiple (26.44 vs 36.83 P/E), one valuation lens rather than an overall verdict.
- •KO converts more revenue to profit (27.80% vs 13.62% net margin).
- •MRK grew revenue faster over the past five years (8.60% vs 8.07% CAGR).
- •MRK pays the higher dividend yield (2.57% vs 2.47%).
Metrics side by side
Valuation
| Metric | KO | MRK |
|---|---|---|
| P/E ratio | 26.44 | 36.83 |
| Forward P/E | 25.72 | 47.09 |
| P/S ratio | 7.36 | 4.93 |
| P/B ratio | 10.78 | 7.05 |
| PEG ratio | 0.98 | 1.81 |
| EV / EBITDA | 25.53 | 15.16 |
| FCF yield | 3.46% | 4.37% |
Profitability
| Metric | KO | MRK |
|---|---|---|
| Gross margin | 61.74% | 75.91% |
| Operating margin | 29.34% | 36.17% |
| Net margin | 27.80% | 13.62% |
| ROE | 40.74% | 19.48% |
| ROIC | 13.00% | 18.27% |
Dividends
| Metric | KO | MRK |
|---|---|---|
| Dividend yield | 2.47% | 2.57% |
| Payout ratio | 68.20% | 46.03% |
Growth (annualized)
| Metric | KO | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 8.07% | 8.60% |
| EPS CAGR (5Y) | 11.12% | 21.21% |
| FCF CAGR (5Y) | -9.38% | 15.69% |
| Total return CAGR (5Y) | 11.23% | 14.44% |
Frequently asked
- Which has the lower trailing P/E, KO or MRK?
- KO has the lower trailing P/E: KO trades at 26.44 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, KO or MRK?
- Over the past five years, MRK grew revenue faster — KO at a 8.07% CAGR versus MRK at 8.60%.
- Does KO or MRK pay a bigger dividend?
- KO yields 2.47% and MRK yields 2.57% based on trailing dividends and the latest price.
- Is KO or MRK more profitable?
- KO runs the higher net margin — KO at 27.80% versus MRK at 13.62%.
- How have KO and MRK total returns compared?
- Over the past 10 years, KO delivered 10.23% and MRK delivered 12.27% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Coca-Cola P/E ratioMerck & P/E ratioCoca-Cola dividend yieldMerck & dividend yieldCoca-Cola ROEMerck & ROECoca-Cola operating marginMerck & operating marginCoca-Cola revenue growthMerck & revenue growthCoca-Cola free cash flowMerck & free cash flow
Coca-Cola & Merck & appear in these rankings
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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.