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DGX vs MRK

DGX
Quest Diagnostics Incorporated
NEUTRAL
Price
$196.27
Market Cap
$21.73B
Sector
Healthcare
AI Confidence
85%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
DGX
21.69
MRK
16.66
Forward P/E
DGX
16.88
MRK
12.42
P/B Ratio
DGX
3.01
MRK
5.7
P/S Ratio
DGX
1.93
MRK
4.61
EV/EBITDA
DGX
12.63
MRK
11.46

Profitability

Gross Margin
DGX
33.28%
MRK
77.21%
Operating Margin
DGX
14.2%
MRK
32.77%
Profit Margin
DGX
9.08%
MRK
28.08%
ROE
DGX
14.54%
MRK
36.88%
ROA
DGX
6.35%
MRK
12.04%

Growth

Revenue Growth
DGX
9.2%
MRK
5.0%
Earnings Growth
DGX
15.5%
MRK
-19.3%

Financial Health

Debt/Equity
DGX
0.83
MRK
0.96
Current Ratio
DGX
1.18
MRK
1.54
Quick Ratio
DGX
0.91
MRK
0.96

Dividends

Dividend Yield
DGX
1.75%
MRK
2.83%
Payout Ratio
DGX
36.02%
MRK
45.05%

AI Verdict

DGX NEUTRAL

DGX exhibits stable fundamental health with a Piotroski F-Score of 6/9 and a sustainable dividend payout ratio of 36.02%. While the company shows consistent earnings growth (15.5% YoY) and a long track record of beating estimates, it is currently caught between a conservative Graham Number ($115.21) and a growth-based Intrinsic Value ($266.98). The bullish fundamental outlook is heavily offset by a 0/100 technical trend and bearish insider sentiment, with 10 sell transactions and zero buys in the last six months. Consequently, the stock appears fundamentally sound but lacks immediate price momentum.

Strengths
Consistent earnings track record with 3/4 beats in the last year and a long history of positive surprises
Strong earnings growth (15.5% YoY) outpacing revenue growth (9.2% YoY)
Sustainable dividend profile with a low payout ratio of 36.02%
Risks
Strongly bearish insider activity with $4.12M in sales and no insider buying
Bearish technical trend (0/100) suggesting lack of market momentum
Liquidity risk indicated by a Quick Ratio of 0.91 (below 1.0)
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

DGX vs MRK: Head-to-Head Comparison

This page compares Quest Diagnostics Incorporated (DGX) and Merck & Co., Inc. (MRK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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