MRK vs. NVS: Merck vs. Novartis Stock Comparison

August 16, 2026

How do Merck (MRK) and Novartis (NVS) 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

Merck (MRK) and Novartis (NVS) 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 Novartis (NVS) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Merck (MRK) and Novartis (NVS)
Profile Item	MRK	NVS
Name	Merck & Co., Inc.	Novartis AG Sponsored ADR
Country/Region	United States	Switzerland
GICS Sector	Health Care	Health Care
GICS Industry Group	Pharmaceuticals, Biotechnology & Life Sciences	Pharmaceuticals, Biotechnology & Life Sciences
GICS Industry	Pharmaceuticals	Pharmaceuticals
GICS Sub-Industry	Pharmaceuticals	Pharmaceuticals
Market Capitalization	335.14 billion USD	286.78 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	November 7, 1996
Security Type	Common Stock	ADR

Price Performance

Cumulative Growth

MRK

NVS

GSPC

Merck (MRK) vs. Novartis (NVS), 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 Merck (MRK) and Novartis (NVS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
Total Return (1Y)	69.62%	27.34%
Total Return (3Y, Annualized)	11.01%	17.42%
Total Return (5Y, Annualized)	15.66%	14.16%

Risk Profile

Drawdown History

MRK

NVS

GSPC

Merck (MRK) vs. Novartis (NVS), 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 Merck (MRK) and Novartis (NVS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
Volatility (1Y, Annualized)	27.48%	21.20%
Beta (5Y)	0.20	0.45
Max Drawdown (5Y)	-43.44%	-20.42%
Avg. Volume (3M)	10.12M	1.83M

Risk-Adjusted Performance

Risk-Return Positioning

MRK and NVS 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 Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
Sharpe Ratio (1Y)	2.39	1.10
Sortino Ratio (1Y)	4.18	1.71

Profitability

ROE (TTM)

Both Merck (MRK) at 6.96% and Novartis (NVS) at 30.35% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.96%

Max: 102.29%
MRK: 6.96%
Q3: 2.88%
Median: -33.17%
Q1: -64.41%
Min: -157.61%

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

30.35%

Max: 102.29%
NVS: 30.35%
Q3: 2.88%
Median: -33.17%
Q1: -64.41%
Min: -157.61%

Merck (MRK) vs. Novartis (NVS): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

Novartis (NVS) at 22.50% keeps the most of each sales dollar — above its industry’s net margin range — and Merck (MRK) at 4.77% also retains a top-quartile share.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.77%

Max: 11.21%
MRK: 4.77%
Q3: 2.65%
Median: 0.00%
Q1: -4.14%
Min: -13.58%

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

22.50%

NVS: 22.50%
Max: 11.21%
Q3: 2.65%
Median: 0.00%
Q1: -4.14%
Min: -13.58%

Merck (MRK) vs. Novartis (NVS): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Merck (MRK) reports a negative operating margin of -0.24%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Novartis (NVS) reports 34.62%, ranking against industry peers normally.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

-0.24%

Max: 94.41%
Q3: 8.92%
Median: 0.00%
MRK: -0.24%
Q1: -119.39%
Min: -309.54%

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

34.62%

Max: 94.41%
NVS: 34.62%
Q3: 8.92%
Median: 0.00%
Q1: -119.39%
Min: -309.54%

Merck (MRK) vs. Novartis (NVS): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
ROE (TTM)	6.96%	30.35%
ROA (TTM)	11.87%	10.25%
Net Margin (TTM)	4.77%	22.50%
Operating Margin (TTM)	-0.24%	34.62%
Gross Margin (TTM)	75.90%	74.98%

Growth

Revenue Growth

Both Merck (MRK) at 1.31% and Novartis (NVS) at 9.57% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Both Merck (MRK) at 8.01% and Novartis (NVS) at 21.81% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
Revenue Growth (YoY)	1.31%	9.57%
Revenue Growth (3Y CAGR)	3.12%	9.25%
EPS Growth (YoY)	8.01%	21.81%
EPS Growth (3Y CAGR)	8.43%	31.14%

Financial Strength

Current Ratio (MRQ)

Both Merck (MRK) at 1.32 and Novartis (NVS) at 0.86 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.32

Max: 26.16
Q3: 12.25
Median: 5.88
Q1: 2.81
MRK: 1.32
Min: 0.55

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.86

Max: 26.16
Q3: 12.25
Median: 5.88
Q1: 2.81
NVS: 0.86
Min: 0.55

Merck (MRK) vs. Novartis (NVS): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Both Merck (MRK) at 1.28 and Novartis (NVS) at 1.17 lean more heavily on debt funding than most peers, landing in the higher-leverage quartile of their industries.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.28

Max: 1.64
MRK: 1.28
Q3: 0.68
Median: 0.16
Q1: 0.02
Min: 0.00

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.17

Max: 1.64
NVS: 1.17
Q3: 0.68
Median: 0.16
Q1: 0.02
Min: 0.00

Merck (MRK) vs. Novartis (NVS): A comparison of their debt-to-equity ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
Current Ratio (MRQ)	1.32	0.86
Debt / Equity (MRQ)	1.28	1.17
Net Debt / EBITDA	1.62	1.79

Dividends

Dividend Yield (TTM)

Both Merck (MRK) at 2.45% and Novartis (NVS) at 3.08% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.45%

MRK: 2.45%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.08%

NVS: 3.08%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Merck (MRK) vs. Novartis (NVS): 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 268.80%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Novartis (NVS) reports 71.60%, ranking against industry peers normally.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

268.80%

MRK: 268.80%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

71.60%

NVS: 71.60%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Merck (MRK) vs. Novartis (NVS): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
Dividend Yield (TTM)	2.45%	3.08%
Dividend Payout Ratio (TTM)	268.80%	71.60%

Valuation

P/E Ratio (TTM)

Novartis (NVS) at 22.79 is near its industry’s usual P/E ratio, while Merck (MRK) at 108.67 sits above its peer range — an unusually expensive price for MRK’s trailing earnings.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

108.67

MRK: 108.67
Max: 84.14
Q3: 43.16
Median: 28.60
Q1: 15.80
Min: 2.32

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

22.79

Max: 84.14
Q3: 43.16
Median: 28.60
NVS: 22.79
Q1: 15.80
Min: 2.32

Merck (MRK) vs. Novartis (NVS): A comparison of their P/E ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Merck (MRK) at 5.03 and Novartis (NVS) at 5.06 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.03

Max: 70.39
Q3: 30.57
Median: 7.62
MRK: 5.03
Q1: 3.50
Min: 0.01

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.06

Max: 70.39
Q3: 30.57
Median: 7.62
NVS: 5.06
Q1: 3.50
Min: 0.01

Merck (MRK) vs. Novartis (NVS): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Merck (MRK) at 8.00 and Novartis (NVS) at 6.90 are valued close to their industries’ norm against book — neither stands out from peers.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.00

Max: 17.22
Q3: 8.05
MRK: 8.00
Median: 3.87
Q1: 1.75
Min: -7.69

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.90

Max: 17.22
Q3: 8.05
NVS: 6.90
Median: 3.87
Q1: 1.75
Min: -7.69

Merck (MRK) vs. Novartis (NVS): A comparison of their P/B ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation Metrics

Valuation metrics for Merck (MRK) and Novartis (NVS)
Metric	MRK	NVS
P/E Ratio (TTM)	108.67	22.79
P/S Ratio (TTM)	5.03	5.06
P/B Ratio (MRQ)	8.00	6.90
Free Cash Flow Yield (TTM)	4.53%	4.15%