MRK vs. VRTX: Merck vs. Vertex Pharmaceuticals Stock Comparison
How do Merck (MRK) and Vertex Pharmaceuticals (VRTX) 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 Vertex Pharmaceuticals (VRTX) both fall under the Pharmaceuticals, Biotechnology & Life Sciences industry group, but MRK is classified in Pharmaceuticals while VRTX is classified in Biotechnology.
| Profile Item | MRK | VRTX |
|---|---|---|
| Name | Merck & Co., Inc. | Vertex Pharmaceuticals Incorporated Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Pharmaceuticals | Biotechnology |
| GICS Sub-Industry | Pharmaceuticals | Biotechnology |
| Market Capitalization | 361.73 billion USD | 138.71 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | January 2, 1962 | July 24, 1991 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MRK | VRTX |
|---|---|---|
| Total Return (1Y) | 76.14% | 34.89% |
| Total Return (3Y, Annualized) | 16.48% | 14.44% |
| Total Return (5Y, Annualized) | 15.77% | 23.65% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | MRK | VRTX |
|---|---|---|
| Volatility (1Y, Annualized) | 30.24% | 29.73% |
| Beta (5Y) | 0.11 | 0.29 |
| Max Drawdown (5Y) | -43.44% | -29.07% |
| Avg. Volume (3M) | 10.24M | 1.25M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MRK | VRTX |
|---|---|---|
| Sharpe Ratio (1Y) | 2.38 | 1.03 |
| Sortino Ratio (1Y) | 4.33 | 1.68 |
Profitability
ROE (TTM)
Vertex Pharmaceuticals (VRTX) at 20.80% sits in the top ROE quartile, while Merck (MRK) at 5.06% is closer to the peer norm — stronger capital efficiency for VRTX.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
20.80%
- Max
- 109.18%
- VRTX
- 20.80%
- Q3
- 6.23%
- Median
- -26.66%
- Q1
- -64.05%
- Min
- -167.77%
Net Margin (TTM)
Vertex Pharmaceuticals (VRTX) at 30.70% converts revenue to bottom-line profit above its industry’s benchmark range, while Merck (MRK) at 3.64% keeps roughly the typical share for its industry.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
30.70%
- VRTX
- 30.70%
- Max
- 18.05%
- Q3
- 4.78%
- Median
- 0.00%
- Q1
- -4.14%
- Min
- -17.05%
Operating Margin (TTM)
Both Merck (MRK) at 35.22% and Vertex Pharmaceuticals (VRTX) at 35.57% 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
35.22%
- Max
- 83.12%
- MRK
- 35.22%
- Q3
- 14.77%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.57%
- Max
- 83.12%
- VRTX
- 35.57%
- Q3
- 14.77%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
Profitability Metrics
| Metric | MRK | VRTX |
|---|---|---|
| ROE (TTM) | 5.06% | 20.80% |
| ROA (TTM) | 11.29% | 10.62% |
| Net Margin (TTM) | 3.64% | 30.70% |
| Operating Margin (TTM) | 35.22% | 35.57% |
| Gross Margin (TTM) | 75.20% | 54.81% |
Growth
Revenue Growth
Both Merck (MRK) at 1.31% and Vertex Pharmaceuticals (VRTX) at 8.90% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Only one side can be read here: Merck (MRK) reports EPS growth of 8.01%, ranked against its industry; Vertex Pharmaceuticals (VRTX) has no EPS growth figure this period.
Growth Metrics
| Metric | MRK | VRTX |
|---|---|---|
| Revenue Growth (YoY) | 1.31% | 8.90% |
| Revenue Growth (3Y CAGR) | 3.12% | 10.35% |
| EPS Growth (YoY) | 8.01% | -- |
| EPS Growth (3Y CAGR) | 8.43% | 6.12% |
Financial Strength
Current Ratio (MRQ)
Both Merck (MRK) at 1.35 and Vertex Pharmaceuticals (VRTX) at 2.34 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
1.35
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- Q1
- 2.47
- MRK
- 1.35
- Min
- 0.10
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.34
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- Q1
- 2.47
- VRTX
- 2.34
- Min
- 0.10
Debt / Equity (MRQ)
Vertex Pharmaceuticals (VRTX) at 0.31 carries an industry-typical debt-to-equity mix, while Merck (MRK) at 1.20 uses more debt funding than most peers.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.31
- Max
- 1.42
- Q3
- 0.65
- VRTX
- 0.31
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Financial Strength Metrics
| Metric | MRK | VRTX |
|---|---|---|
| Current Ratio (MRQ) | 1.35 | 2.34 |
| Debt / Equity (MRQ) | 1.20 | 0.31 |
| Net Debt / EBITDA | 1.50 | 0.03 |
Dividends
Dividend Yield (TTM)
Vertex Pharmaceuticals (VRTX) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Merck (MRK) reports a yield of 2.29%, ranking against industry peers normally.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
- VRTX
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Merck (MRK) reports payout ratio above 100% at 343.43%, meaning dividends exceeded current-period earnings; Vertex Pharmaceuticals (VRTX) pays no dividend (payout 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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
- VRTX
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | MRK | VRTX |
|---|---|---|
| Dividend Yield (TTM) | 2.29% | 0.00% |
| Dividend Payout Ratio (TTM) | 343.43% | 0.00% |
Valuation
P/E Ratio (TTM)
Vertex Pharmaceuticals (VRTX) at 35.21 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.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.21
- Max
- 85.34
- Q3
- 43.46
- VRTX
- 35.21
- Median
- 26.69
- Q1
- 13.30
- Min
- 0.07
P/S Ratio (TTM)
On P/S ratio, both Merck (MRK) at 5.37 and Vertex Pharmaceuticals (VRTX) at 10.71 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
MRK
Pharmaceuticals, Biotechnology & Life Sciences industry group
5.37
- Max
- 58.18
- Q3
- 25.77
- Median
- 7.30
- MRK
- 5.37
- Q1
- 3.01
- Min
- 0.01
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
10.71
- Max
- 58.18
- Q3
- 25.77
- VRTX
- 10.71
- Median
- 7.30
- Q1
- 3.01
- Min
- 0.01
P/B Ratio (MRQ)
Both Merck (MRK) at 8.06 and Vertex Pharmaceuticals (VRTX) at 6.63 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
6.63
- Max
- 13.53
- VRTX
- 6.63
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Valuation Metrics
| Metric | MRK | VRTX |
|---|---|---|
| P/E Ratio (TTM) | 148.21 | 35.21 |
| P/S Ratio (TTM) | 5.37 | 10.71 |
| P/B Ratio (MRQ) | 8.06 | 6.63 |
| Free Cash Flow Yield (TTM) | 3.88% | 1.69% |