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 September 13, 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.
$144.84HealthcareDelayed quote: Sep 14, 2026, 3:59 PM EDT
PEP
PepsiCo, Inc.
$136.34Consumer DefensiveDelayed quote: Sep 14, 2026, 4:00 PM EDT
Total return — MRK vs PEP
growth of $100 · dividends reinvested · last 10yMRK +224.4% (+12.5%/yr)PEP +75.2% (+5.8%/yr)MRK compounded faster over this window
MRK PEP
MRK vs PEP: by the numbers
- •MRK is the larger company ($357.73B vs $186.24B market cap).
- •PEP trades at the lower trailing earnings multiple (17.87 vs 115.87 P/E), one valuation lens rather than an overall verdict.
- •PEP converts more revenue to profit (10.82% vs 4.78% net margin).
- •MRK grew revenue faster over the past five years (7.87% vs 5.37% CAGR).
- •PEP pays the higher dividend yield (4.26% vs 2.33%).
Metrics side by side
Valuation
| Metric | MRK | PEP |
|---|---|---|
| P/E ratio | 115.87 | 17.87 |
| Forward P/E | 52.74 | 15.94 |
| P/S ratio | 5.39 | 1.92 |
| P/B ratio | 8.53 | 8.43 |
| EV / EBITDA | 22.88 | 12.16 |
| FCF yield | 4.49% | 4.98% |
Profitability
| Metric | MRK | PEP |
|---|---|---|
| Gross margin | 75.38% | 53.96% |
| Operating margin | 36.17% | 14.96% |
| Net margin | 4.78% | 10.82% |
| ROE | 7.57% | 47.45% |
| ROIC | 5.80% | 13.22% |
Dividends
| Metric | MRK | PEP |
|---|---|---|
| Dividend yield | 2.33% | 4.26% |
| Payout ratio | 268.80% | 76.08% |
Growth (annualized)
| Metric | MRK | PEP |
|---|---|---|
| Revenue CAGR (5Y) | 7.87% | 5.37% |
| EPS CAGR (5Y) | 21.21% | 3.25% |
| FCF CAGR (5Y) | 23.61% | 5.40% |
| Total return CAGR (5Y) | 18.01% | 0.61% |
Frequently asked
- Which has the lower trailing P/E, MRK or PEP?
- PEP has the lower trailing P/E: MRK trades at 115.87 and PEP at 17.87. 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 7.87% CAGR versus PEP at 5.37%.
- Does MRK or PEP pay a bigger dividend?
- MRK yields 2.33% and PEP yields 4.26% based on trailing dividends and the latest price.
- Is MRK or PEP more profitable?
- PEP runs the higher net margin — MRK at 4.78% versus PEP at 10.82%.
- How have MRK and PEP total returns compared?
- Over the past 10 years, MRK delivered 12.62% and PEP delivered 5.97% 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 September 13, 2026.