MRK vs. NVS: Merck vs. Novartis Stock Comparison
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.
| 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 | 317.37 billion USD | 299.04 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
Trailing Returns
Performance Metrics
| Metric | MRK | NVS |
|---|---|---|
| Total Return (1Y) | 67.76% | 33.45% |
Risk Profile
Drawdown History
Risk Metrics
| Metric | MRK | NVS |
|---|---|---|
| Volatility (1Y, Annualized) | 27.69% | 21.15% |
| Beta (5Y) | 0.19 | 0.46 |
| Avg. Volume (3M) | 10.34M | 1.73M |
Risk-Adjusted Performance
Risk-Return Positioning
Profitability
ROE (TTM)
Both Merck (MRK) at 18.94% and Novartis (NVS) at 34.93% 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
18.94%
- Max
- 100.65%
- MRK
- 18.94%
- Q3
- 2.17%
- Median
- -32.62%
- Q1
- -63.57%
- Min
- -158.89%
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
34.93%
- Max
- 100.65%
- NVS
- 34.93%
- Q3
- 2.17%
- Median
- -32.62%
- Q1
- -63.57%
- Min
- -158.89%
Net Margin (TTM)
Both Merck (MRK) at 13.59% and Novartis (NVS) at 23.92% keep an unusually large share of revenue as bottom-line profit — each net margin clears its industry’s benchmark range.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
13.59%
- MRK
- 13.59%
- Max
- 8.29%
- Q3
- 2.10%
- Median
- 0.00%
- Q1
- -2.04%
- Min
- -6.93%
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
23.92%
- NVS
- 23.92%
- Max
- 8.29%
- Q3
- 2.10%
- Median
- 0.00%
- Q1
- -2.04%
- Min
- -6.93%
Operating Margin (TTM)
Both Merck (MRK) at 38.60% and Novartis (NVS) at 30.48% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
38.60%
- Max
- 100.30%
- MRK
- 38.60%
- Q3
- 3.47%
- Median
- 0.00%
- Q1
- -135.53%
- Min
- -337.81%
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
30.48%
- Max
- 100.30%
- NVS
- 30.48%
- Q3
- 3.47%
- Median
- 0.00%
- Q1
- -135.53%
- Min
- -337.81%
Profitability Metrics
| Metric | MRK | NVS |
|---|---|---|
| ROE (TTM) | 18.94% | 34.93% |
| ROA (TTM) | 12.58% | 10.54% |
| Net Margin (TTM) | 13.59% | 23.92% |
| Operating Margin (TTM) | 38.60% | 30.48% |
| Gross Margin (TTM) | 76.73% | 75.55% |
Growth
Revenue Growth
Revenue Growth Metrics
| Metric | MRK | NVS |
|---|---|---|
| Revenue Growth (YoY) | 1.31% | 9.57% |
| Revenue Growth (3Y CAGR) | 3.12% | 9.25% |
EPS Growth
EPS Growth Metrics
| Metric | MRK | NVS |
|---|---|---|
| EPS Growth (YoY) | 8.01% | 21.81% |
| EPS Growth (3Y CAGR) | 8.43% | 31.14% |
Financial Strength
Current Ratio (MRQ)
Both Merck (MRK) at 1.30 and Novartis (NVS) at 0.85 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
1.30
- Max
- 24.76
- Q3
- 11.79
- Median
- 5.69
- Q1
- 2.69
- MRK
- 1.30
- Min
- 0.23
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.85
- Max
- 24.76
- Q3
- 11.79
- Median
- 5.69
- Q1
- 2.69
- NVS
- 0.85
- Min
- 0.23
Debt / Equity (MRQ)
Both Merck (MRK) at 1.07 and Novartis (NVS) at 1.21 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
1.07
- Max
- 1.60
- MRK
- 1.07
- Q3
- 0.68
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
1.21
- Max
- 1.60
- NVS
- 1.21
- Q3
- 0.68
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Financial Strength Metrics
| Metric | MRK | NVS |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 0.85 |
| Debt / Equity (MRQ) | 1.07 | 1.21 |
| Net Debt / EBITDA | 1.47 | 1.75 |
Dividends
Dividend Yield (TTM)
Both Merck (MRK) at 2.54% and Novartis (NVS) at 2.96% 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
2.54%
- MRK
- 2.54%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.96%
- NVS
- 2.96%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Merck (MRK) at 93.52% and Novartis (NVS) at 67.91% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
93.52%
- MRK
- 93.52%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
67.91%
- NVS
- 67.91%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | MRK | NVS |
|---|---|---|
| Dividend Yield (TTM) | 2.54% | 2.96% |
| Dividend Payout Ratio (TTM) | 93.52% | 67.91% |
Valuation
P/E Ratio (TTM)
Both Merck (MRK) at 36.20 and Novartis (NVS) at 22.48 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
36.20
- Max
- 91.40
- Q3
- 48.24
- MRK
- 36.20
- Median
- 26.30
- Q1
- 15.83
- Min
- 2.03
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
22.48
- Max
- 91.40
- Q3
- 48.24
- Median
- 26.30
- NVS
- 22.48
- Q1
- 15.83
- Min
- 2.03
P/S Ratio (TTM)
On P/S ratio, both Merck (MRK) at 4.83 and Novartis (NVS) at 5.29 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
4.83
- Max
- 65.04
- Q3
- 29.15
- Median
- 7.88
- MRK
- 4.83
- Q1
- 3.43
- Min
- 0.01
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
5.29
- Max
- 65.04
- Q3
- 29.15
- Median
- 7.88
- NVS
- 5.29
- Q1
- 3.43
- Min
- 0.01
P/B Ratio (MRQ)
Merck (MRK) at 6.92 is valued about in line with its industry on P/B ratio, while Novartis (NVS) at 7.76 carries an above-peer premium to book — NVS is pricier on assets.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
6.92
- Max
- 15.83
- Q3
- 7.42
- MRK
- 6.92
- Median
- 3.80
- Q1
- 1.75
- Min
- -6.63
NVS
Pharmaceuticals, Biotechnology & Life Sciences industry group
7.76
- Max
- 15.83
- NVS
- 7.76
- Q3
- 7.42
- Median
- 3.80
- Q1
- 1.75
- Min
- -6.63
Valuation Metrics
| Metric | MRK | NVS |
|---|---|---|
| P/E Ratio (TTM) | 36.20 | 22.48 |
| P/S Ratio (TTM) | 4.83 | 5.29 |
| P/B Ratio (MRQ) | 6.92 | 7.76 |
| Free Cash Flow Yield (TTM) | 4.43% | 4.02% |