Quest Diagnostics Incorporated (DGX) vs ICON PLC (ICLR)

Quest Diagnostics Incorporated and ICON PLC are both Diagnostics & Research companies. Quest Diagnostics Incorporated is the larger, with a market value of $26.2B against $13.4B — 2.0× the size. Quest Diagnostics Incorporated trades at the lower P/E: 24.8× against 257×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.87% against 3.26%. Quest Diagnostics Incorporated has the higher net margin (9.15% vs 0.51%) and the higher return on invested capital (7.94% vs 1.57%). Across the 22 metrics below, Quest Diagnostics Incorporated leads on 15 and ICON PLC on 7.

Valuation

Metric DGX ICLR Diagnostics & Research median
P/E 24.77 257.44 33.95
P/S 2.27 1.60 4.87
P/B 3.35 1.41 3.12
Price to free cash flow 19.45 14.98 34.02
EV/EBITDA 14.14 23.55 25.20
EV/Sales 2.70 1.89 5.66
Earnings yield 4.04% 0.39% (1.75%)
Free cash flow yield 5.14% 6.67% (0.13%)

Profitability

Metric DGX ICLR Diagnostics & Research median
Gross margin 33.11% 23.91% 50.89%
Operating margin 14.10% 3.57% (8.57%)
Net margin 9.15% 0.51% (6.37%)
Free cash flow margin 11.67% 10.66% 0.00%
Return on equity 14.03% 0.45% (2.92%)
Return on assets 6.43% 0.26% (6.71%)
Return on invested capital 7.94% 1.57% 0.00%

Growth

Metric DGX ICLR Diagnostics & Research median
Revenue growth (TTM) 9.87% 3.26% 7.69%
EPS growth (last fiscal year) 13.78% (69.57%) —
Revenue growth, 5-year CAGR 3.18% 24.15% 7.40%
Net income growth, 5-year CAGR (7.06%) (7.15%) 0.00%

Health

Metric DGX ICLR Diagnostics & Research median
Debt to equity 0.72 0.36 0.11
Current ratio 1.59 0.95 2.02
Net debt to EBITDA 2.47 3.34 0.78

Dividend

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

Size

Metric DGX ICLR Diagnostics & Research median
Market cap 26.19b 13.42b 2.56b

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