Quest Diagnostics Incorporated (DGX)vsMerck & Company Inc (MRK)
DGX
Quest Diagnostics Incorporated
$250.81
-0.40%
HEALTHCARE · Cap: $27.11B
MRK
Merck & Company Inc
$144.70
-2.49%
HEALTHCARE · Cap: $368.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 469% more annual revenue ($67.38B vs $11.84B). DGX leads profitability with a 9.5% profit margin vs 3.6%. DGX appears more attractively valued with a PEG of 1.58. DGX earns a higher WallStSmart Score of 64/100 (C+).
DGX
Buy64
out of 100
Grade: C+
MRK
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.2%
Fair Value
$111.82
Current Price
$250.81
$138.99 premium
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$144.70
$60.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 28.7% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 8.5x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DGX
The strongest argument for DGX centers on EPS Growth.
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 Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
DGX carries more volatility with a beta of 0.54 — expect wider price swings.
DGX is growing revenue faster at 10.0% — 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 (64/100 vs 44/100). 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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