BMY vs. MRK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BMY and MRK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
MRK’s market capitalization of 198.62 billion USD is significantly greater than BMY’s 94.33 billion USD, highlighting its more substantial market valuation.
With betas of 0.39 for BMY and 0.40 for MRK, both stocks show similar sensitivity to overall market movements.
| Symbol | BMY | MRK |
|---|---|---|
| Company Name | Bristol-Myers Squibb Company | Merck & Co., Inc. |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - General |
| CEO | Christopher S. Boerner | Robert M. Davis |
| Price | 46.35 USD | 79.1 USD |
| Market Cap | 94.33 billion USD | 198.62 billion USD |
| Beta | 0.39 | 0.40 |
| Exchange | NYSE | NYSE |
| IPO Date | June 1, 1972 | January 13, 1978 |
| ADR | No | No |
Historical Performance
This chart compares the performance of BMY and MRK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BMY
31.93%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 78.00%
- Median
- 31.21%
- Q1
- 16.63%
- Min
- 2.76%
BMY’s Return on Equity of 31.93% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
MRK
38.16%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 78.00%
- Median
- 31.21%
- Q1
- 16.63%
- Min
- 2.76%
MRK’s Return on Equity of 38.16% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
BMY
10.85%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
BMY’s Return on Invested Capital of 10.85% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
MRK
21.67%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
In the upper quartile for the Drug Manufacturers - General industry, MRK’s Return on Invested Capital of 21.67% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
BMY
11.38%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
Falling into the lower quartile for the Drug Manufacturers - General industry, BMY’s Net Profit Margin of 11.38% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
MRK
27.27%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
A Net Profit Margin of 27.27% places MRK in the upper quartile for the Drug Manufacturers - General industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
BMY
18.45%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
BMY’s Operating Profit Margin of 18.45% is in the lower quartile for the Drug Manufacturers - General industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
MRK
35.78%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
An Operating Profit Margin of 35.78% places MRK in the upper quartile for the Drug Manufacturers - General industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | BMY | MRK |
|---|---|---|
| Return on Equity (TTM) | 31.93% | 38.16% |
| Return on Assets (TTM) | 5.86% | 15.14% |
| Return on Invested Capital (TTM) | 10.85% | 21.67% |
| Net Profit Margin (TTM) | 11.38% | 27.27% |
| Operating Profit Margin (TTM) | 18.45% | 35.78% |
| Gross Profit Margin (TTM) | 65.99% | 80.96% |
Financial Strength
Current Ratio
BMY
1.28
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.38
- Median
- 1.27
- Q1
- 0.89
- Min
- 0.74
BMY’s Current Ratio of 1.28 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
MRK
1.41
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.38
- Median
- 1.27
- Q1
- 0.89
- Min
- 0.74
MRK’s Current Ratio of 1.41 is in the upper quartile for the Drug Manufacturers - General industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
BMY
2.95
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.57
- Median
- 1.08
- Q1
- 0.71
- Min
- 0.28
BMY’s leverage is in the upper quartile of the Drug Manufacturers - General industry, with a Debt-to-Equity Ratio of 2.95. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
MRK
0.72
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.57
- Median
- 1.08
- Q1
- 0.71
- Min
- 0.28
MRK’s Debt-to-Equity Ratio of 0.72 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
BMY
4.36
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
BMY’s Interest Coverage Ratio of 4.36 is positioned comfortably within the norm for the Drug Manufacturers - General industry, indicating a standard and healthy capacity to cover its interest payments.
MRK
-75.48
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
MRK has a negative Interest Coverage Ratio of -75.48. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | BMY | MRK |
|---|---|---|
| Current Ratio (TTM) | 1.28 | 1.41 |
| Quick Ratio (TTM) | 1.17 | 1.16 |
| Debt-to-Equity Ratio (TTM) | 2.95 | 0.72 |
| Debt-to-Asset Ratio (TTM) | 0.55 | 0.30 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.49 | 0.96 |
| Interest Coverage Ratio (TTM) | 4.36 | -75.48 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BMY and MRK. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
BMY
5.26%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.27%
- Median
- 3.42%
- Q1
- 2.43%
- Min
- 0.00%
With a Dividend Yield of 5.26%, BMY offers a more attractive income stream than most of its peers in the Drug Manufacturers - General industry, signaling a strong commitment to shareholder returns.
MRK
4.05%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.27%
- Median
- 3.42%
- Q1
- 2.43%
- Min
- 0.00%
MRK’s Dividend Yield of 4.05% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
BMY
90.59%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 79.84%
- Median
- 61.93%
- Q1
- 45.09%
- Min
- 0.00%
BMY’s Dividend Payout Ratio of 90.59% is in the upper quartile for the Drug Manufacturers - General industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
MRK
45.54%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 79.84%
- Median
- 61.93%
- Q1
- 45.09%
- Min
- 0.00%
MRK’s Dividend Payout Ratio of 45.54% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | BMY | MRK |
|---|---|---|
| Dividend Yield (TTM) | 5.26% | 4.05% |
| Dividend Payout Ratio (TTM) | 90.59% | 45.54% |
Valuation
Price-to-Earnings Ratio
BMY
17.37
Drug Manufacturers - General Industry
- Max
- 27.97
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
BMY’s P/E Ratio of 17.37 is within the middle range for the Drug Manufacturers - General industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MRK
11.48
Drug Manufacturers - General Industry
- Max
- 27.97
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
In the lower quartile for the Drug Manufacturers - General industry, MRK’s P/E Ratio of 11.48 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
BMY
-3.02
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
BMY has a negative Forward PEG Ratio of -3.02. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
MRK
5.02
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
MRK’s Forward PEG Ratio of 5.02 is exceptionally high for the Drug Manufacturers - General industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
BMY
1.98
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
BMY’s P/S Ratio of 1.98 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
MRK
3.11
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
MRK’s P/S Ratio of 3.11 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
BMY
5.41
Drug Manufacturers - General Industry
- Max
- 14.02
- Q3
- 8.90
- Median
- 5.00
- Q1
- 3.42
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
MRK
4.14
Drug Manufacturers - General Industry
- Max
- 14.02
- Q3
- 8.90
- Median
- 5.00
- Q1
- 3.42
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | BMY | MRK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 17.37 | 11.48 |
| Forward PEG Ratio (TTM) | -3.02 | 5.02 |
| Price-to-Sales Ratio (P/S, TTM) | 1.98 | 3.11 |
| Price-to-Book Ratio (P/B, TTM) | 5.41 | 4.14 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 7.21 | 11.66 |
| EV-to-EBITDA (TTM) | 8.32 | 8.24 |
| EV-to-Sales (TTM) | 2.83 | 3.52 |