Bristol Myers Squibb vs Merck
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KIRA’s take AI analyst
I put Bristol Myers Squibb and Merck side by side, using each one’s latest annual report. Here is what stands out:
- Merck is the larger business, with $65.0B of revenue in fiscal 2025 against $48.2B for Bristol Myers Squibb.
- Merck grew revenue faster (1.3%, against −0.2%).
- Bristol Myers Squibb turned more of its sales into free cash flow (26.7% FCF margin, against 19.0%).
- Merck earned a higher return on the capital invested in it (24.8%, against 15.2%).
- Investors pay more for each dollar of Merck’s earnings: a P/E of 111.6x against 13.6x for Bristol Myers Squibb.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Bristol Myers Squibb
BMY
3/10
FCF marginReturn on equityPiotroski F-score
Merck
MRK
7/10
Revenue growth5-year growthGross marginNet marginReturn on capitalNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | BMY FY25 | MRK FY25 |
|---|---|---|
| Size | ||
| Market cap | $126.2B | $347.3B |
| Revenue | $48.2B | $65.0B |
| Free cash flow | $12.8B | $12.4B |
| Net income | $7.1B | $18.3B |
| Growth | ||
| Revenue growth | −0.2% | 1.3% |
| 5-year growth | 2.5% | 9.4% |
| Share count change | 0.6% | −1.3% |
| Profitability | ||
| Gross margin | 71.1% | 74.8% |
| Operating margin | — | — |
| Net margin | 14.6% | 28.1% |
| FCF margin | 26.7% | 19.0% |
| Return on capital | 15.2% | 24.8% |
| Return on equity | 40.5% | 36.9% |
| Balance sheet | ||
| Net debt | $36.4B | $34.5B |
| Net debt / EBITDA | 2.4x | 1.2x |
| Dividends and buybacks | $5.0B | $13.3B |
| Valuation & quality | ||
| P/E | 13.6x | 111.6x |
| Piotroski F-score | 8 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.