WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1265% more annual revenue ($65.77B vs $4.82B). DXCM leads profitability with a 19.3% profit margin vs 13.6%. DXCM appears more attractively valued with a PEG of 1.12. DXCM earns a higher WallStSmart Score of 72/100 (B).

DXCM

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 8.5Value: 7.3Quality: 6.5
Piotroski: 5/9Altman Z: 2.56

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DXCMUndervalued (+90.0%)

Margin of Safety

+90.0%

Fair Value

$679.65

Current Price

$60.61

$619.04 discount

UndervaluedFair: $679.65Overvalued
MRKOvervalued (-14.9%)

Margin of Safety

-14.9%

Fair Value

$97.76

Current Price

$111.38

$13.62 premium

UndervaluedFair: $97.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DXCM4 strengths · Avg: 9.0/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
92.2%10/10

Earnings expanding 92.2% YoY

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

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

DXCM1 concerns · Avg: 4.0/10
P/E RatioValuation
26.1x4/10

Moderate valuation

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.282/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DXCM

The strongest argument for DXCM centers on Return on Equity, EPS Growth, Operating Margin. Profitability is solid with margins at 19.3% and operating margin at 21.4%. Revenue growth of 15.0% 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 P/E Ratio.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

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 1.40 — expect wider price swings.

DXCM is growing revenue faster at 15.0% — 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 19.3% margins and 15.0% 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.

Visit Website →

Want to dig deeper into these stocks?