Quest Diagnostics Incorporated (DGX) vs Guardant Health, Inc. (GH)

Quest Diagnostics Incorporated and Guardant Health, Inc. are both Diagnostics & Research companies. Quest Diagnostics Incorporated is the larger, with a market value of $28.0B against $20.6B — 1.4× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Quest Diagnostics Incorporated trades at 25.0×. Guardant Health, Inc. grew revenue faster over the last twelve months: 41.7% against 9.13%. Quest Diagnostics Incorporated has the higher net margin (9.50% vs −37.9%) and the higher return on invested capital (8.48% vs −25.7%). Across the 18 metrics below, Quest Diagnostics Incorporated leads on 10 and Guardant Health, Inc. on 8.

Valuation

Metric DGX GH Diagnostics & Research median
P/E 24.98 n/m 34.52
P/S 2.36 16.20 4.24
P/B 3.52 n/m 3.42
Price to free cash flow 20.34 n/m 33.51
EV/EBITDA 14.18 n/m 23.44
EV/Sales 2.76 16.55 5.18
Earnings yield 4.00% (2.39%) (1.50%)
Free cash flow yield 4.92% (1.21%) 0.00%

Profitability

Metric DGX GH Diagnostics & Research median
Gross margin 33.11% 65.19% 48.32%
Operating margin 14.55% (39.41%) (5.68%)
Net margin 9.50% (37.93%) (4.10%)
Free cash flow margin 11.61% (18.15%) 0.00%
Return on equity 14.76% 153.90% 0.00%
Return on assets 6.73% (30.68%) (6.05%)
Return on invested capital 8.48% (25.68%) 0.00%

Growth

Metric DGX GH Diagnostics & Research median
Revenue growth (TTM) 9.13% 41.69% 8.99%
EPS growth (last fiscal year) 13.78% 6.74% 20.36%
Revenue growth, 5-year CAGR 3.18% 27.92% 7.30%
Net income growth, 5-year CAGR (7.06%) 0.00% 0.00%

Health

Metric DGX GH Diagnostics & Research median
Debt to equity 0.70 (5.45) 0.01
Current ratio 1.70 3.60 2.27
Net debt to EBITDA 2.47 (0.75) 0.68

Dividend

Metric DGX GH Diagnostics & Research median
Dividend yield 1.33% — 0.67%
Payout ratio 0.34 — 0.20

Size

Metric DGX GH Diagnostics & Research median
Market cap 28.03b 20.59b 2.22b

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