Merck & Co., Inc. (MRK) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Merck & Co., Inc. and Microsoft Corporation 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: MRK is classified in Healthcare; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
MRK
Merck & Co., Inc.
$131.84HealthcareDelayed quote: Jul 28, 2026, 3:59 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MRK vs MSFT
growth of $100 · dividends reinvested · last 30yMRK +990.2%MSFT +7530.9%MSFT compounded faster
Log scale — wide-divergence pair
MRK MSFT
MRK vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $325.61B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 36.83 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 13.62% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 8.60% CAGR).
- •MRK pays the higher dividend yield (2.57% vs 0.91%).
Metrics side by side
Valuation
| Metric | MRK | MSFT |
|---|---|---|
| P/E ratio | 36.83 | 23.16 |
| Forward P/E | 47.09 | 22.87 |
| P/S ratio | 4.93 | 9.10 |
| P/B ratio | 7.05 | 6.99 |
| PEG ratio | 1.81 | 2.34 |
| EV / EBITDA | 15.16 | 15.53 |
| FCF yield | 4.37% | 2.52% |
Profitability
| Metric | MRK | MSFT |
|---|---|---|
| Gross margin | 75.91% | 68.31% |
| Operating margin | 36.17% | 46.80% |
| Net margin | 13.62% | 39.34% |
| ROE | 19.48% | 30.22% |
| ROIC | 18.27% | 21.63% |
Dividends
| Metric | MRK | MSFT |
|---|---|---|
| Dividend yield | 2.57% | 0.91% |
| Payout ratio | 46.03% | 25.99% |
Growth (annualized)
| Metric | MRK | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 8.60% | 14.75% |
| EPS CAGR (5Y) | 21.21% | 18.68% |
| FCF CAGR (5Y) | 15.69% | 6.27% |
| Total return CAGR (5Y) | 14.44% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, MRK or MSFT?
- MSFT has the lower trailing P/E: MRK trades at 36.83 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MRK or MSFT?
- Over the past five years, MSFT grew revenue faster — MRK at a 8.60% CAGR versus MSFT at 14.75%.
- Does MRK or MSFT pay a bigger dividend?
- MRK yields 2.57% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is MRK or MSFT more profitable?
- MSFT runs the higher net margin — MRK at 13.62% versus MSFT at 39.34%.
- How have MRK and MSFT total returns compared?
- Over the past 10 years, MRK delivered 12.27% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Merck & P/E ratioMicrosoft P/E ratioMerck & dividend yieldMicrosoft dividend yieldMerck & ROEMicrosoft ROEMerck & operating marginMicrosoft operating marginMerck & revenue growthMicrosoft revenue growthMerck & free cash flowMicrosoft free cash flow
Merck & & Microsoft 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.