WallStSmart

Quest Diagnostics Incorporated (DGX)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 483% more annual revenue ($65.77B vs $11.28B). MRK leads profitability with a 13.6% profit margin vs 9.1%. DGX appears more attractively valued with a PEG of 1.56. DGX earns a higher WallStSmart Score of 58/100 (C).

DGX

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 5.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.37

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for DGX.

MRKSignificantly Overvalued (-42.4%)

Margin of Safety

-42.4%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DGX0 strengths · Avg: 0/10

No standout strengths identified

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$283.78B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

DGX1 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.4x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : DGX

DGX has a balanced fundamental profile.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bear Case : DGX

The primary concerns for DGX are PEG Ratio.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

DGX carries more volatility with a beta of 0.59 — expect wider price swings.

DGX is growing revenue faster at 9.2% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DGX scores higher overall (58/100 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.

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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