WallStSmart

DexCom Inc (DXCM)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1224% more annual revenue ($65.77B vs $4.97B). DXCM leads profitability with a 20.1% profit margin vs 13.6%. DXCM appears more attractively valued with a PEG of 1.56. DXCM earns a higher WallStSmart Score of 72/100 (B).

DXCM

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 8.5Value: 4.3Quality: 7.0
Piotroski: 5/9Altman Z: 2.67

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for DXCM.

MRKSignificantly Overvalued (-58.0%)

Margin of Safety

-58.0%

Fair Value

$81.23

Current Price

$128.58

$47.35 premium

UndervaluedFair: $81.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DXCM4 strengths · Avg: 8.8/10
Return on EquityProfitability
31.5%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
24.3%8/10

Strong operational efficiency at 24.3%

EPS GrowthGrowth
43.6%8/10

Earnings expanding 43.6% YoY

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$316.14B10/10

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

DXCM3 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
33.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.2x4/10

Trading at 12.2x book value

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
36.0x4/10

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 : DXCM

The strongest argument for DXCM centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 20.1% and operating margin at 24.3%. Revenue growth of 13.1% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : DXCM

The primary concerns for DXCM are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : MRK

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

Key Dynamics to Monitor

DXCM profiles as a mature stock while MRK is a value play — different risk/reward profiles.

DXCM carries more volatility with a beta of 1.45 — expect wider price swings.

DXCM is growing revenue faster at 13.1% — sustainability is the question.

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

Bottom Line

DXCM scores higher overall (72/100 vs 50/100), backed by strong 20.1% margins and 13.1% revenue growth. Both earn "Strong 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.

DexCom Inc

HEALTHCARE · MEDICAL DEVICES · USA

DexCom, Inc. is a company that develops, manufactures, and distributes continuous glucose monitoring (CGM) systems for diabetes management. It operates internationally with headquarters in San Diego, California, and has a manufacturing facility in Mesa, Arizona.

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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