We believe that Merck stock (NYSE: MRK) and Coca-Cola stock (NYSE: KO) will offer little returns in the next three years. Although these companies are from different sectors, we compare them because they have a similar market capitalization of $260 billion to $280 billion. The decision to invest often comes down to finding the best stocks within the parameters of certain characteristics that suit an investment style. The size of profits can matter, as larger profits can imply greater market power. Since these stocks are from different sectors, comparing P/S against one another may not be helpful. We compare their current multiples with the historical ones in the sections below to better gauge their valuations.
Interestingly, Merck has had a Sharpe Ratio of 0.5 since early 2017, while the figure stood at 0.3 for Coca-Cola
KO
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