Quest Diagnostics Incorporated (DGX)vsMerck & Company Inc (MRK)
DGX
Quest Diagnostics Incorporated
$246.45
-0.40%
HEALTHCARE · Cap: $25.99B
MRK
Merck & Company Inc
$146.87
-0.19%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 476% more annual revenue ($66.57B vs $11.56B). DGX leads profitability with a 9.2% profit margin vs 4.8%. DGX appears more attractively valued with a PEG of 1.84. DGX earns a higher WallStSmart Score of 60/100 (C).
DGX
Buy60
out of 100
Grade: C
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for DGX.
Margin of Safety
-77.2%
Fair Value
$83.04
Current Price
$146.87
$63.83 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.6x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : DGX
Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : DGX
The primary concerns for DGX are PEG Ratio, P/E Ratio.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
DGX carries more volatility with a beta of 0.55 — expect wider price swings.
DGX is growing revenue faster at 10.2% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DGX scores higher overall (60/100 vs 36/100) and 10.2% revenue growth. 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.
Quest Diagnostics Incorporated
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Quest Diagnostics is an American clinical laboratory. A Fortune 500 company, Quest operates in the United States, Puerto Rico, Mexico, and Brazil. Quest also maintains collaborative agreements with various hospitals and clinics across the globe.
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.
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