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

Quest Diagnostics Incorporated and Guardant Health, Inc. are both Diagnostics & Research companies. Quest Diagnostics Incorporated and Guardant Health, Inc. are of similar size ($26.2B and $23.9B). Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Quest Diagnostics Incorporated trades at 24.8×. Guardant Health, Inc. grew revenue faster over the last twelve months: 42.7% against 9.87%. Quest Diagnostics Incorporated has the higher net margin (9.15% vs −38.3%) and the higher return on invested capital (7.94% vs −129.7%). 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 24.77 n/m 33.95
P/S 2.27 19.91 4.87
P/B 3.35 n/m 3.12
Price to free cash flow 19.45 n/m 34.02
EV/EBITDA 14.14 n/m 25.20
EV/Sales 2.70 20.29 5.66
Earnings yield 4.04% (1.97%) (1.75%)
Free cash flow yield 5.14% (1.10%) (0.13%)

Profitability

Metric DGX GH Diagnostics & Research median
Gross margin 33.11% 65.01% 50.89%
Operating margin 14.10% (39.75%) (8.57%)
Net margin 9.15% (38.33%) (6.37%)
Free cash flow margin 11.67% (20.35%) 0.00%
Return on equity 14.03% 171.64% (2.92%)
Return on assets 6.43% (27.95%) (6.71%)
Return on invested capital 7.94% (129.70%) 0.00%

Growth

Metric DGX GH Diagnostics & Research median
Revenue growth (TTM) 9.87% 42.74% 7.69%
EPS growth (last fiscal year) 13.78% 6.74% —
Revenue growth, 5-year CAGR 3.18% 27.92% 7.40%
Net income growth, 5-year CAGR (7.06%) 0.00% 0.00%

Health

Metric DGX GH Diagnostics & Research median
Debt to equity 0.72 (6.74) 0.11
Current ratio 1.59 4.03 2.02
Net debt to EBITDA 2.47 (0.75) 0.78

Dividend

Metric DGX GH Diagnostics & Research median
Dividend yield 2.30% — 0.70%
Payout ratio 0.29 0.00 0.00

Size

Metric DGX GH Diagnostics & Research median
Market cap 26.19b 23.94b 2.56b

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