MRK vs. MSFT
MRK (Merck & Co., Inc.) and MSFT (Microsoft Corporation) are both stocks. MRK operates in Drug Manufacturers - General (Healthcare), while MSFT operates in Software - Infrastructure (Technology). Over the past 10 years, MRK returned 11.69%/yr vs 24.64%/yr for MSFT. At a 0.27 correlation, their price movements are largely independent.
Performance
MRK vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, MRK achieves a 15.60% return, which is significantly higher than MSFT's -13.46% return. Over the past 10 years, MRK has underperformed MSFT with an annualized return of 11.69%, while MSFT has yielded a comparatively higher 24.64% annualized return.
MRK
- 1D
- 0.44%
- 1M
- 6.37%
- YTD
- 15.60%
- 6M
- 23.07%
- 1Y
- 61.27%
- 3Y*
- 6.37%
- 5Y*
- 13.79%
- 10Y*
- 11.69%
MSFT
- 1D
- -2.66%
- 1M
- 0.87%
- YTD
- -13.46%
- 6M
- -13.38%
- 1Y
- -10.20%
- 3Y*
- 8.53%
- 5Y*
- 11.60%
- 10Y*
- 24.64%
MRK vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MRK Merck & Co., Inc. | 15.60% | 9.79% | -6.26% | 1.01% | 49.42% | 1.75% | -7.20% | 22.27% | 39.95% | -1.49% |
MSFT Microsoft Corporation | -13.46% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between MRK and MSFT is -0.23, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.17 |
Correlation (All Time) Calculated using the full available price history since Mar 14, 1986 | 0.27 |
The correlation between MRK and MSFT shifts across timeframes, from -0.23 (1 year) to 0.27 (all time), reflecting how their relationship changes across market environments.
Fundamentals
MRK:
$298.59B
MSFT:
$3.10T
MRK:
$3.58
MSFT:
$16.79
MRK:
33.70
MSFT:
24.82
MRK:
0.03
MSFT:
1.74
MRK:
4.59
MSFT:
9.76
MRK:
6.51
MSFT:
7.49
MRK:
$65.59B
MSFT:
$318.27B
MRK:
$49.79B
MSFT:
$217.41B
MRK:
$22.69B
MSFT:
$200.96B
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Return for Risk
MRK vs. MSFT — Risk / Return Rank
MRK
MSFT
MRK vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Merck & Co., Inc. (MRK) and Microsoft Corporation (MSFT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| MRK | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.66 | ||
| Sortino ratioReturn per unit of downside risk | +3.63 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 0.95 | +0.44 |
| Calmar ratioReturn relative to maximum drawdown | 5.42 | -0.30 | +5.72 |
| Martin ratioReturn relative to average drawdown | 13.58 | -0.64 | +14.22 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MRK | MSFT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.26 | -0.41 | +2.66 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 0.44 | +0.15 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.51 | 0.91 | -0.40 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.48 | 0.74 | -0.26 |
Drawdowns
MRK vs. MSFT - Drawdown Comparison
The maximum MRK drawdown since its inception was -68.61%, roughly equal to the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for MRK and MSFT.
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Drawdown Indicators
| MRK | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.61% | -69.38% | +0.77% |
Max Drawdown (1Y)Largest decline over 1 year | -11.37% | -33.91% | +22.54% |
Max Drawdown (3Y)Largest decline over 3 years | -43.44% | -33.91% | -9.53% |
Max Drawdown (5Y)Largest decline over 5 years | -43.44% | -37.15% | -6.29% |
Max Drawdown (10Y)Largest decline over 10 years | -43.44% | -37.15% | -6.29% |
Current DrawdownCurrent decline from peak | -3.64% | -22.65% | +19.01% |
Average DrawdownAverage peak-to-trough decline | -18.84% | -21.78% | +2.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.52% | 16.07% | -11.55% |
Volatility
MRK vs. MSFT - Volatility Comparison
The current volatility for Merck & Co., Inc. (MRK) is 9.45%, while Microsoft Corporation (MSFT) has a volatility of 10.32%. This indicates that MRK experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MRK | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.45% | 10.32% | -0.87% |
Volatility (6M)Calculated over the trailing 6-month period | 18.16% | 22.34% | -4.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.28% | 25.25% | +2.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.71% | 26.63% | -2.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.96% | 27.05% | -4.09% |
Dividends
MRK vs. MSFT - Dividend Comparison
MRK's dividend yield for the trailing twelve months is around 2.75%, more than MSFT's 0.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MRK Merck & Co., Inc. | 2.75% | 3.12% | 3.14% | 2.72% | 2.52% | 3.41% | 3.03% | 2.48% | 2.60% | 3.36% | 3.14% | 3.43% |
MSFT Microsoft Corporation | 0.85% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Financials
MRK vs. MSFT - Financials Comparison
This section allows you to compare key financial metrics between Merck & Co., Inc. and Microsoft Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MRK vs. MSFT - Profitability Comparison
MRK - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Merck & Co., Inc. reported a gross profit of 13.34B and revenue of 16.29B. Therefore, the gross margin over that period was 81.9%.
MSFT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a gross profit of 56.06B and revenue of 82.89B. Therefore, the gross margin over that period was 67.6%.
MRK - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Merck & Co., Inc. reported an operating income of -1.88B and revenue of 16.29B, resulting in an operating margin of -11.6%.
MSFT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported an operating income of 38.40B and revenue of 82.89B, resulting in an operating margin of 46.3%.
MRK - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Merck & Co., Inc. reported a net income of -4.24B and revenue of 16.29B, resulting in a net margin of -26.0%.
MSFT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a net income of 31.78B and revenue of 82.89B, resulting in a net margin of 38.3%.
Frequently Asked Questions
MRK and MSFT have a correlation of -0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.32%) compared to MRK (9.45%). In terms of maximum drawdown, MRK dropped -68.61% vs MSFT's -69.38%.
MRK currently has the higher Sharpe Ratio (2.26 vs -0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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