CareDx Inc (CDNA)vsMerck & Company Inc (MRK)
CDNA
CareDx Inc
$47.31
+0.17%
HEALTHCARE · Cap: $2.35B
MRK
Merck & Company Inc
$132.93
+1.92%
HEALTHCARE · Cap: $316.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 14257% more annual revenue ($65.77B vs $458.09M). CDNA leads profitability with a 24.2% profit margin vs 13.6%. CDNA trades at a lower P/E of 22.6x. CDNA earns a higher WallStSmart Score of 53/100 (C-).
CDNA
Buy53
out of 100
Grade: C-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.3%
Fair Value
$62.15
Current Price
$47.31
$14.84 discount
Margin of Safety
-60.9%
Fair Value
$81.38
Current Price
$132.93
$51.55 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 52.2% year-over-year
Conservative balance sheet, low leverage
Keeps 24 of every $100 in revenue as profit
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 4.5B in free cash flow
Areas to Watch
0.0% earnings growth
Operating margin of 0.2%
ROE of -2.6% — below average capital efficiency
Distress zone — elevated risk
Premium valuation, high expectations priced in
4.9% revenue growth
ROE of 7.6% — below average capital efficiency
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CDNA
The strongest argument for CDNA centers on Revenue Growth, Debt/Equity, Profit Margin. Profitability is solid with margins at 24.2% and operating margin at 0.2%. Revenue growth of 52.2% 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, Operating Margin, Return on Equity.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Return on Equity.
Key Dynamics to Monitor
CDNA profiles as a growth stock while MRK is a value play — different risk/reward profiles.
CDNA carries more volatility with a beta of 2.42 — expect wider price swings.
CDNA is growing revenue faster at 52.2% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
CDNA scores higher overall (53/100 vs 50/100), backed by strong 24.2% margins and 52.2% revenue growth. 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.
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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