Dollar General Corporation (DG)vsMerck & Company Inc (MRK)
DG
Dollar General Corporation
$113.29
-2.73%
CONSUMER DEFENSIVE · Cap: $25.63B
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 54% more annual revenue ($65.77B vs $42.72B). MRK leads profitability with a 13.6% profit margin vs 3.5%. DG appears more attractively valued with a PEG of 1.69. DG earns a higher WallStSmart Score of 63/100 (C+).
DG
Buy63
out of 100
Grade: C+
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.5%
Fair Value
$214.72
Current Price
$113.29
$101.43 discount
Margin of Safety
-14.9%
Fair Value
$97.76
Current Price
$111.38
$13.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
3.5% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : DG
The primary concerns for DG are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 3.5% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
DG carries more volatility with a beta of 0.28 — expect wider price swings.
DG is growing revenue faster at 5.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DG scores higher overall (63/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Dollar General Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.
Visit Website →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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