Seek Returns logo

MDT vs. MRK: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at MDT and MRK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMDTMRK
Company NameMedtronic plcMerck & Co., Inc.
CountryIrelandUnited States
GICS SectorHealth CareHealth Care
GICS IndustryHealth Care Equipment & SuppliesPharmaceuticals
Market Capitalization119.04 billion USD206.59 billion USD
ExchangeNYSENYSE
Listing DateMay 2, 1973January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MDT 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.

MDT vs. MRK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMDTMRK
5-Day Price Return1.83%2.91%
13-Week Price Return8.27%2.83%
26-Week Price Return2.30%-6.06%
52-Week Price Return14.44%-27.11%
Month-to-Date Return2.96%5.88%
Year-to-Date Return16.31%-16.86%
10-Day Avg. Volume6.76M11.29M
3-Month Avg. Volume7.59M15.38M
3-Month Volatility18.20%29.65%
Beta0.800.37

Profitability

Return on Equity (TTM)

MDT

9.62%

Health Care Equipment & Supplies Industry

Max
34.53%
Q3
19.38%
Median
9.52%
Q1
4.86%
Min
-7.58%

MDT’s Return on Equity of 9.62% is on par with the norm for the Health Care Equipment & Supplies industry, indicating its profitability relative to shareholder equity is typical for the sector.

MRK

34.88%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

In the upper quartile for the Pharmaceuticals industry, MRK’s Return on Equity of 34.88% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MDT vs. MRK: A comparison of their Return on Equity (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

MDT

13.90%

Health Care Equipment & Supplies Industry

Max
23.34%
Q3
13.06%
Median
9.53%
Q1
5.96%
Min
-3.87%

A Net Profit Margin of 13.90% places MDT in the upper quartile for the Health Care Equipment & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.

MRK

25.79%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

A Net Profit Margin of 25.79% places MRK in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

MDT vs. MRK: A comparison of their Net Profit Margin (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

MDT

17.76%

Health Care Equipment & Supplies Industry

Max
29.44%
Q3
17.80%
Median
13.95%
Q1
8.73%
Min
-3.56%

MDT’s Operating Profit Margin of 17.76% is around the midpoint for the Health Care Equipment & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.

MRK

30.00%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

An Operating Profit Margin of 30.00% places MRK in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MDT vs. MRK: A comparison of their Operating Profit Margin (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolMDTMRK
Return on Equity (TTM)9.62%34.88%
Return on Assets (TTM)5.16%14.04%
Net Profit Margin (TTM)13.90%25.79%
Operating Profit Margin (TTM)17.76%30.00%
Gross Profit Margin (TTM)65.39%78.32%

Financial Strength

Current Ratio (MRQ)

MDT

1.85

Health Care Equipment & Supplies Industry

Max
4.90
Q3
3.05
Median
2.14
Q1
1.49
Min
0.86

MDT’s Current Ratio of 1.85 aligns with the median group of the Health Care Equipment & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.

MRK

1.42

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

MRK’s Current Ratio of 1.42 aligns with the median group of the Pharmaceuticals industry, indicating that its short-term liquidity is in line with its sector peers.

MDT vs. MRK: A comparison of their Current Ratio (MRQ) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MDT

0.59

Health Care Equipment & Supplies Industry

Max
1.49
Q3
0.71
Median
0.45
Q1
0.14
Min
0.00

MDT’s Debt-to-Equity Ratio of 0.59 is typical for the Health Care Equipment & Supplies industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MRK

0.72

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

MRK’s Debt-to-Equity Ratio of 0.72 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MDT vs. MRK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

MDT

10.20

Health Care Equipment & Supplies Industry

Max
58.29
Q3
25.56
Median
9.06
Q1
3.60
Min
-28.92

MDT’s Interest Coverage Ratio of 10.20 is positioned comfortably within the norm for the Health Care Equipment & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.

MRK

19.65

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

MRK’s Interest Coverage Ratio of 19.65 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

MDT vs. MRK: A comparison of their Interest Coverage Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolMDTMRK
Current Ratio (MRQ)1.851.42
Quick Ratio (MRQ)1.421.17
Debt-to-Equity Ratio (MRQ)0.590.72
Interest Coverage Ratio (TTM)10.2019.65

Growth

Revenue Growth

MDT vs. MRK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MDT vs. MRK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MDT

3.05%

Health Care Equipment & Supplies Industry

Max
4.05%
Q3
1.76%
Median
0.71%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.05%, MDT offers a more attractive income stream than most of its peers in the Health Care Equipment & Supplies industry, signaling a strong commitment to shareholder returns.

MRK

3.97%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

With a Dividend Yield of 3.97%, MRK offers a more attractive income stream than most of its peers in the Pharmaceuticals industry, signaling a strong commitment to shareholder returns.

MDT vs. MRK: A comparison of their Dividend Yield (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

MDT

76.98%

Health Care Equipment & Supplies Industry

Max
160.00%
Q3
72.47%
Median
27.49%
Q1
0.00%
Min
0.00%

MDT’s Dividend Payout Ratio of 76.98% is in the upper quartile for the Health Care Equipment & Supplies 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

48.95%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

MRK’s Dividend Payout Ratio of 48.95% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MDT vs. MRK: A comparison of their Dividend Payout Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolMDTMRK
Dividend Yield (TTM)3.05%3.97%
Dividend Payout Ratio (TTM)76.98%48.95%

Valuation

Price-to-Earnings Ratio (TTM)

MDT

25.27

Health Care Equipment & Supplies Industry

Max
73.48
Q3
51.69
Median
34.31
Q1
25.74
Min
11.47

In the lower quartile for the Health Care Equipment & Supplies industry, MDT’s P/E Ratio of 25.27 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MRK

12.32

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

In the lower quartile for the Pharmaceuticals industry, MRK’s P/E Ratio of 12.32 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MDT vs. MRK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

MDT

3.51

Health Care Equipment & Supplies Industry

Max
9.53
Q3
5.26
Median
3.39
Q1
2.13
Min
0.00

MDT’s P/S Ratio of 3.51 aligns with the market consensus for the Health Care Equipment & Supplies industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MRK

3.18

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

MRK’s P/S Ratio of 3.18 aligns with the market consensus for the Pharmaceuticals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MDT vs. MRK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

MDT

2.25

Health Care Equipment & Supplies Industry

Max
10.85
Q3
5.98
Median
3.48
Q1
2.43
Min
0.69

MDT’s P/B Ratio of 2.25 is in the lower quartile for the Health Care Equipment & Supplies industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

MRK

4.06

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

MRK’s P/B Ratio of 4.06 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

MDT vs. MRK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolMDTMRK
Price-to-Earnings Ratio (TTM)25.2712.32
Price-to-Sales Ratio (TTM)3.513.18
Price-to-Book Ratio (MRQ)2.254.06
Price-to-Free Cash Flow Ratio (TTM)22.7213.73