MRK vs. ZTS: Merck vs. Zoetis Stock Comparison
How do Merck (MRK) and Zoetis (ZTS) 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 Zoetis (ZTS) are both classified in the Pharmaceuticals sub-industry within the broader Pharmaceuticals industry, placing them in the closest GICS peer bucket.
| Profile Item | MRK | ZTS |
|---|---|---|
| Name | Merck & Co., Inc. | Zoetis Inc. Class A 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 | Pharmaceuticals |
| GICS Sub-Industry | Pharmaceuticals | Pharmaceuticals |
| Market Capitalization | 361.73 billion USD | 32.26 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | February 1, 2013 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MRK | ZTS |
|---|---|---|
| Total Return (1Y) | 76.14% | -30.10% |
| Total Return (3Y, Annualized) | 16.48% | -20.42% |
| Total Return (5Y, Annualized) | 15.77% | -16.87% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | MRK | ZTS |
|---|---|---|
| Volatility (1Y, Annualized) | 30.24% | 38.23% |
| Beta (5Y) | 0.11 | 0.66 |
| Max Drawdown (5Y) | -43.44% | -70.45% |
| Avg. Volume (3M) | 10.24M | 4.65M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MRK | ZTS |
|---|---|---|
| Sharpe Ratio (1Y) | 2.38 | -0.90 |
| Sortino Ratio (1Y) | 4.33 | -1.10 |
Profitability
ROE (TTM)
Zoetis (ZTS) at 57.63% sits in the top ROE quartile, while Merck (MRK) at 5.06% is closer to the peer norm — stronger capital efficiency for ZTS.
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%
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
57.63%
- Max
- 109.18%
- ZTS
- 57.63%
- Q3
- 6.23%
- Median
- -26.66%
- Q1
- -64.05%
- Min
- -167.77%
Net Margin (TTM)
Zoetis (ZTS) at 26.41% 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%
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
26.41%
- ZTS
- 26.41%
- 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 Zoetis (ZTS) at 38.19% 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%
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
38.19%
- Max
- 83.12%
- ZTS
- 38.19%
- Q3
- 14.77%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
Profitability Metrics
| Metric | MRK | ZTS |
|---|---|---|
| ROE (TTM) | 5.06% | 57.63% |
| ROA (TTM) | 11.29% | 14.87% |
| Net Margin (TTM) | 3.64% | 26.41% |
| Operating Margin (TTM) | 35.22% | 38.19% |
| Gross Margin (TTM) | 75.20% | 71.65% |
Growth
Revenue Growth
Both Merck (MRK) at 1.31% and Zoetis (ZTS) at 2.28% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Merck (MRK) at 8.01% and Zoetis (ZTS) at 10.05% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | MRK | ZTS |
|---|---|---|
| Revenue Growth (YoY) | 1.31% | 2.28% |
| Revenue Growth (3Y CAGR) | 3.12% | 5.42% |
| EPS Growth (YoY) | 8.01% | 10.05% |
| EPS Growth (3Y CAGR) | 8.43% | 10.27% |
Financial Strength
Current Ratio (MRQ)
Both Merck (MRK) at 1.35 and Zoetis (ZTS) at 2.35 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
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.35
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- Q1
- 2.47
- ZTS
- 2.35
- Min
- 0.10
Debt / Equity (MRQ)
Both balance sheets lean debt-heavy versus peers, but ZTS is more stretched: Merck (MRK) at 1.20 sits in the higher-leverage quartile and Zoetis (ZTS) at 2.80 is above its industry benchmark range.
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
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.80
- ZTS
- 2.80
- Max
- 1.42
- Q3
- 0.65
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Financial Strength Metrics
| Metric | MRK | ZTS |
|---|---|---|
| Current Ratio (MRQ) | 1.35 | 2.35 |
| Debt / Equity (MRQ) | 1.20 | 2.80 |
| Net Debt / EBITDA | 1.50 | 1.92 |
Dividends
Dividend Yield (TTM)
Both Merck (MRK) at 2.29% and Zoetis (ZTS) at 2.55% 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
2.29%
- MRK
- 2.29%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.55%
- ZTS
- 2.55%
- 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 and sustainability needs extra context. Meanwhile Zoetis (ZTS) reports 35.24%, ranking against industry peers normally.
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%
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.24%
- ZTS
- 35.24%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | MRK | ZTS |
|---|---|---|
| Dividend Yield (TTM) | 2.29% | 2.55% |
| Dividend Payout Ratio (TTM) | 343.43% | 35.24% |
Valuation
P/E Ratio (TTM)
Zoetis (ZTS) at 13.50 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
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
13.50
- Max
- 85.34
- Q3
- 43.46
- Median
- 26.69
- ZTS
- 13.50
- Q1
- 13.30
- Min
- 0.07
P/S Ratio (TTM)
On P/S ratio, both Merck (MRK) at 5.37 and Zoetis (ZTS) at 3.40 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
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
3.40
- Max
- 58.18
- Q3
- 25.77
- Median
- 7.30
- ZTS
- 3.40
- Q1
- 3.01
- Min
- 0.01
P/B Ratio (MRQ)
Both Merck (MRK) at 8.06 and Zoetis (ZTS) at 9.80 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
ZTS
Pharmaceuticals, Biotechnology & Life Sciences industry group
9.80
- Max
- 13.53
- ZTS
- 9.80
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Valuation Metrics
| Metric | MRK | ZTS |
|---|---|---|
| P/E Ratio (TTM) | 148.21 | 13.50 |
| P/S Ratio (TTM) | 5.37 | 3.40 |
| P/B Ratio (MRQ) | 8.06 | 9.80 |
| Free Cash Flow Yield (TTM) | 3.88% | 6.36% |