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

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

Company Profile

MRK is a standard domestic stock, while PHG trades as New York Registered Shares, providing U.S. investors with a way to invest in the foreign-based company.

SymbolMRKPHG
Company NameMerck & Co., Inc.Koninklijke Philips N.V.
CountryUnited StatesNetherlands
GICS SectorHealth CareHealth Care
GICS IndustryPharmaceuticalsHealth Care Equipment & Supplies
Market Capitalization209.99 billion USD26.34 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 17, 1980
Security TypeCommon StockNY Reg Shrs

Historical Performance

This chart compares the performance of MRK and PHG 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.

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

Historical Performance at a Glance

SymbolMRKPHG
5-Day Price Return-2.34%-0.13%
13-Week Price Return8.35%17.36%
26-Week Price Return-6.07%-1.85%
52-Week Price Return-27.69%-12.31%
Month-to-Date Return7.62%3.29%
Year-to-Date Return-15.49%-2.21%
10-Day Avg. Volume11.21M1.30M
3-Month Avg. Volume14.42M1.84M
3-Month Volatility24.55%27.57%
Beta0.371.06

Profitability

Return on Equity (TTM)

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.

PHG

-0.18%

Health Care Equipment & Supplies Industry

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

PHG has a negative Return on Equity of -0.18%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

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

Net Profit Margin (TTM)

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.

PHG

0.90%

Health Care Equipment & Supplies Industry

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

Falling into the lower quartile for the Health Care Equipment & Supplies industry, PHG’s Net Profit Margin of 0.90% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

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.

PHG

6.11%

Health Care Equipment & Supplies Industry

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

PHG’s Operating Profit Margin of 6.11% is in the lower quartile for the Health Care Equipment & Supplies industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolMRKPHG
Return on Equity (TTM)34.88%-0.18%
Return on Assets (TTM)14.04%-0.08%
Net Profit Margin (TTM)25.79%0.90%
Operating Profit Margin (TTM)30.00%6.11%
Gross Profit Margin (TTM)78.32%43.85%

Financial Strength

Current Ratio (MRQ)

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.

PHG

1.26

Health Care Equipment & Supplies Industry

Max
4.90
Q3
3.05
Median
2.14
Q1
1.49
Min
0.86

PHG’s Current Ratio of 1.26 falls into the lower quartile for the Health Care Equipment & Supplies industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

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.

PHG

0.81

Health Care Equipment & Supplies Industry

Max
1.49
Q3
0.71
Median
0.45
Q1
0.14
Min
0.00

PHG’s leverage is in the upper quartile of the Health Care Equipment & Supplies industry, with a Debt-to-Equity Ratio of 0.81. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

Interest Coverage Ratio (TTM)

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.

PHG

1.41

Health Care Equipment & Supplies Industry

Max
58.29
Q3
25.56
Median
9.06
Q1
3.60
Min
-28.92

In the lower quartile for the Health Care Equipment & Supplies industry, PHG’s Interest Coverage Ratio of 1.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolMRKPHG
Current Ratio (MRQ)1.421.26
Quick Ratio (MRQ)1.170.81
Debt-to-Equity Ratio (MRQ)0.720.81
Interest Coverage Ratio (TTM)19.651.41

Growth

Revenue Growth

MRK vs. PHG: 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

MRK vs. PHG: 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)

MRK

3.77%

Pharmaceuticals Industry

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

With a Dividend Yield of 3.77%, MRK offers a more attractive income stream than most of its peers in the Pharmaceuticals industry, signaling a strong commitment to shareholder returns.

PHG

0.00%

Health Care Equipment & Supplies Industry

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

PHG’s Dividend Yield of 0.00% is consistent with its peers in the Health Care Equipment & Supplies industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

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.

PHG

0.42%

Health Care Equipment & Supplies Industry

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

PHG’s Dividend Payout Ratio of 0.42% is within the typical range for the Health Care Equipment & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolMRKPHG
Dividend Yield (TTM)3.77%0.00%
Dividend Payout Ratio (TTM)48.95%0.42%

Valuation

Price-to-Earnings Ratio (TTM)

MRK

12.97

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 12.97 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

PHG

140.05

Health Care Equipment & Supplies Industry

Max
73.48
Q3
51.69
Median
34.31
Q1
25.74
Min
11.47

At 140.05, PHG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Health Care Equipment & Supplies industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

MRK

3.35

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

MRK’s P/S Ratio of 3.35 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.

PHG

1.26

Health Care Equipment & Supplies Industry

Max
9.53
Q3
5.26
Median
3.39
Q1
2.13
Min
0.00

In the lower quartile for the Health Care Equipment & Supplies industry, PHG’s P/S Ratio of 1.26 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

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

Price-to-Book Ratio (MRQ)

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.

PHG

1.89

Health Care Equipment & Supplies Industry

Max
10.85
Q3
5.98
Median
3.48
Q1
2.43
Min
0.69

PHG’s P/B Ratio of 1.89 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 vs. PHG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Pharmaceuticals and Health Care Equipment & Supplies industry benchmarks.

Valuation at a Glance

SymbolMRKPHG
Price-to-Earnings Ratio (TTM)12.97140.05
Price-to-Sales Ratio (TTM)3.351.26
Price-to-Book Ratio (MRQ)4.061.89
Price-to-Free Cash Flow Ratio (TTM)14.4614.66