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GSK vs. MRK: GSK vs. Merck Stock Comparison

How do GSK (GSK) and Merck (MRK) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

GSK (GSK) and Merck (MRK) are both classified in the Pharmaceuticals sub-industry within the broader Pharmaceuticals industry, placing them in the closest GICS peer bucket.

Merck (MRK) trades as ordinary local shares, while GSK (GSK) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for GSK (GSK) and Merck (MRK)
Profile ItemGSKMRK
NameGSK plc ADRMerck & Co., Inc.
Country/RegionUnited KingdomUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticalsPharmaceuticals
GICS Sub-IndustryPharmaceuticalsPharmaceuticals
Market Capitalization100.88 billion USD361.73 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 28, 1980January 2, 1962
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

GSK
MRK
GSPC
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GSK (GSK) vs. Merck (MRK), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for GSK (GSK) and Merck (MRK). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for GSK (GSK) and Merck (MRK). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
Total Return (1Y)13.73%76.14%
Total Return (3Y, Annualized)18.65%16.48%
Total Return (5Y, Annualized)7.97%15.77%

Risk Profile

Drawdown History

GSK
MRK
GSPC
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GSK (GSK) vs. Merck (MRK), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for GSK (GSK) and Merck (MRK). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
Volatility (1Y, Annualized)26.25%30.24%
Beta (5Y)0.310.11
Max Drawdown (5Y)-37.63%-43.44%
Avg. Volume (3M)4.05M10.24M

Risk-Adjusted Performance

Risk-Return Positioning

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GSK and MRK are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
Sharpe Ratio (1Y)0.362.38
Sortino Ratio (1Y)0.564.33

Profitability

ROE (TTM)

GSK (GSK) at 28.27% sits in the top ROE quartile, while Merck (MRK) at 5.06% is closer to the peer norm — stronger capital efficiency for GSK.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

28.27%

Max
109.18%
GSK
28.27%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.06%

Max
109.18%
Q3
6.23%
MRK
5.06%
Median
-26.66%
Q1
-64.05%
Min
-167.77%
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GSK (GSK) vs. Merck (MRK): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

GSK (GSK) at 12.97% retains a top-quartile share of revenue as profit, ahead of Merck (MRK) at 3.64%, which keeps about the industry-typical share.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

12.97%

Max
18.05%
GSK
12.97%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.64%

Max
18.05%
Q3
4.78%
MRK
3.64%
Median
0.00%
Q1
-4.14%
Min
-17.05%
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GSK (GSK) vs. Merck (MRK): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Both GSK (GSK) at 32.14% and Merck (MRK) at 35.22% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

32.14%

Max
83.12%
GSK
32.14%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.22%

Max
83.12%
MRK
35.22%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%
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GSK (GSK) vs. Merck (MRK): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
ROE (TTM)28.27%5.06%
ROA (TTM)9.24%11.29%
Net Margin (TTM)12.97%3.64%
Operating Margin (TTM)32.14%35.22%
Gross Margin (TTM)73.79%75.20%

Growth

Revenue Growth

Both GSK (GSK) at 4.11% and Merck (MRK) at 1.31% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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GSK (GSK) vs. Merck (MRK): A comparison of their Revenue Growth across different time periods.

EPS Growth

GSK (GSK) at 123.15% sits in the top EPS growth quartile, while Merck (MRK) at 8.01% is closer to the peer norm — faster per-share earnings growth for GSK.

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GSK (GSK) vs. Merck (MRK): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
Revenue Growth (YoY)4.11%1.31%
Revenue Growth (3Y CAGR)3.66%3.12%
EPS Growth (YoY)123.15%8.01%
EPS Growth (3Y CAGR)-27.63%8.43%

Financial Strength

Current Ratio (MRQ)

Both GSK (GSK) at 0.86 and Merck (MRK) at 1.35 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.86

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
GSK
0.86
Min
0.10

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.35

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
MRK
1.35
Min
0.10
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GSK (GSK) vs. Merck (MRK): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Both GSK (GSK) at 1.30 and Merck (MRK) at 1.20 lean more heavily on debt funding than most peers, landing in the higher-leverage quartile of their industries.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.30

Max
1.42
GSK
1.30
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.20

Max
1.42
MRK
1.20
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00
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GSK (GSK) vs. Merck (MRK): A comparison of their debt-to-equity ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength Metrics

Financial strength metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
Current Ratio (MRQ)0.861.35
Debt / Equity (MRQ)1.301.20
Net Debt / EBITDA1.881.50

Dividends

Dividend Yield (TTM)

Both GSK (GSK) at 1.57% and Merck (MRK) at 2.29% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.57%

GSK
1.57%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.29%

MRK
2.29%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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GSK (GSK) vs. Merck (MRK): A comparison of their dividend yield against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Merck (MRK) reports payout ratio above 100% at 343.43%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile GSK (GSK) reports 63.33%, ranking against industry peers normally.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

63.33%

GSK
63.33%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

343.43%

MRK
343.43%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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GSK (GSK) vs. Merck (MRK): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
Dividend Yield (TTM)1.57%2.29%
Dividend Payout Ratio (TTM)63.33%343.43%

Valuation

P/E Ratio (TTM)

GSK (GSK) at 17.54 is near its industry’s usual P/E ratio, while Merck (MRK) at 148.21 sits above its peer range — an unusually expensive price for MRK’s trailing earnings.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

17.54

Max
85.34
Q3
43.46
Median
26.69
GSK
17.54
Q1
13.30
Min
0.07

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

148.21

MRK
148.21
Max
85.34
Q3
43.46
Median
26.69
Q1
13.30
Min
0.07
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GSK (GSK) vs. Merck (MRK): A comparison of their P/E ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/S Ratio (TTM)

GSK (GSK) at 3.01 sits in the cheaper P/S ratio quartile while Merck (MRK) at 5.37 prices around its industry’s middle — GSK costs less per dollar of sales, though read it alongside growth and margins.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.01

Max
58.18
Q3
25.77
Median
7.30
Q1
3.01
GSK
3.01
Min
0.01

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.37

Max
58.18
Q3
25.77
Median
7.30
MRK
5.37
Q1
3.01
Min
0.01
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GSK (GSK) vs. Merck (MRK): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

GSK (GSK) at 4.02 is valued about in line with its industry on P/B ratio, while Merck (MRK) at 8.06 carries an above-peer premium to book — MRK is pricier on assets.

GSK

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.02

Max
13.53
Q3
6.54
GSK
4.02
Median
3.25
Q1
1.69
Min
-5.59

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.06

Max
13.53
MRK
8.06
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59
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GSK (GSK) vs. Merck (MRK): A comparison of their P/B ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation Metrics

Valuation metrics for GSK (GSK) and Merck (MRK)
MetricGSKMRK
P/E Ratio (TTM)17.54148.21
P/S Ratio (TTM)3.015.37
P/B Ratio (MRQ)4.028.06
Free Cash Flow Yield (TTM)5.28%3.88%