WallStSmart

CareDx Inc (CDNA)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 15831% more annual revenue ($65.77B vs $412.82M). MRK leads profitability with a 13.6% profit margin vs -2.0%. MRK earns a higher WallStSmart Score of 50/100 (D+).

CDNA

Hold

37

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 6.7Quality: 6.5
Piotroski: 3/9Altman Z: 0.40

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

CDNAUndervalued (+57.7%)

Margin of Safety

+57.7%

Fair Value

$46.59

Current Price

$28.82

$17.77 discount

UndervaluedFair: $46.59Overvalued
MRKSignificantly Overvalued (-40.6%)

Margin of Safety

-40.6%

Fair Value

$80.96

Current Price

$128.66

$47.70 premium

UndervaluedFair: $80.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDNA2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
39.0%10/10

Revenue surging 39.0% year-over-year

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

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

CDNA4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.20B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.5%3/10

Operating margin of 1.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : CDNA

The strongest argument for CDNA centers on Revenue Growth, Debt/Equity. Revenue growth of 39.0% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : CDNA

The primary concerns for CDNA are EPS Growth, Market Cap, Operating Margin.

Bear Case : MRK

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

Key Dynamics to Monitor

CDNA profiles as a hypergrowth stock while MRK is a value play — different risk/reward profiles.

CDNA carries more volatility with a beta of 2.48 — expect wider price swings.

CDNA is growing revenue faster at 39.0% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (50/100 vs 37/100). CDNA offers better value entry with a 57.7% margin of safety. Both earn "Hold" 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.

CareDx Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

CareDx, Inc. discovers, develops and markets diagnostic solutions for transplant patients and caregivers globally. The company is headquartered in South San Francisco, California.

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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