Merck & Co., Inc. (MRK) vs PepsiCo, Inc. (PEP)
A side-by-side comparison of Merck & Co., Inc. and PepsiCo, 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: MRK is classified in Healthcare; PEP is classified in Consumer Defensive. 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
PEP
PepsiCo, Inc.
$142.86Consumer DefensiveDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MRK vs PEP
growth of $100 · dividends reinvested · last 30yMRK +990.2%PEP +819.5%MRK compounded faster
MRK PEP
MRK vs PEP: by the numbers
- •MRK is the larger company ($325.61B vs $195.15B market cap).
- •PEP trades at the lower trailing earnings multiple (18.32 vs 36.83 P/E), one valuation lens rather than an overall verdict.
- •MRK converts more revenue to profit (13.62% vs 10.82% net margin).
- •MRK grew revenue faster over the past five years (8.60% vs 5.37% CAGR).
- •PEP pays the higher dividend yield (4.11% vs 2.57%).
Metrics side by side
Valuation
| Metric | MRK | PEP |
|---|---|---|
| P/E ratio | 36.83 | 18.32 |
| Forward P/E | 47.09 | 16.34 |
| P/S ratio | 4.93 | 1.97 |
| P/B ratio | 7.05 | 8.66 |
| PEG ratio | 1.81 | 7.63 |
| EV / EBITDA | 15.16 | 12.43 |
| FCF yield | 4.37% | 4.85% |
Profitability
| Metric | MRK | PEP |
|---|---|---|
| Gross margin | 75.91% | 53.96% |
| Operating margin | 36.17% | 14.96% |
| Net margin | 13.62% | 10.82% |
| ROE | 19.48% | 47.45% |
| ROIC | 18.27% | 13.29% |
Dividends
| Metric | MRK | PEP |
|---|---|---|
| Dividend yield | 2.57% | 4.11% |
| Payout ratio | 46.03% | 95.32% |
Growth (annualized)
| Metric | MRK | PEP |
|---|---|---|
| Revenue CAGR (5Y) | 8.60% | 5.37% |
| EPS CAGR (5Y) | 21.21% | 2.40% |
| FCF CAGR (5Y) | 15.69% | 5.40% |
| Total return CAGR (5Y) | 14.44% | 0.72% |
Frequently asked
- Which has the lower trailing P/E, MRK or PEP?
- PEP has the lower trailing P/E: MRK trades at 36.83 and PEP at 18.32. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MRK or PEP?
- Over the past five years, MRK grew revenue faster — MRK at a 8.60% CAGR versus PEP at 5.37%.
- Does MRK or PEP pay a bigger dividend?
- MRK yields 2.57% and PEP yields 4.11% based on trailing dividends and the latest price.
- Is MRK or PEP more profitable?
- MRK runs the higher net margin — MRK at 13.62% versus PEP at 10.82%.
- How have MRK and PEP total returns compared?
- Over the past 10 years, MRK delivered 12.27% and PEP delivered 5.85% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Merck & P/E ratioPepsiCo P/E ratioMerck & dividend yieldPepsiCo dividend yieldMerck & ROEPepsiCo ROEMerck & operating marginPepsiCo operating marginMerck & revenue growthPepsiCo revenue growthMerck & free cash flowPepsiCo free cash flow
Merck & & PepsiCo 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.