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 $28.0B against $15.1B — 1.9× the size. Quest Diagnostics Incorporated trades at the lower P/E: 25.0× against 34.5×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.13% against 1.82%. Quest Diagnostics Incorporated has the higher net margin (9.50% vs 5.45%) and the higher return on invested capital (8.48% vs 3.84%). 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 24.98 34.48 34.52
P/S 2.36 1.88 4.24
P/B 3.52 1.70 3.42
Price to free cash flow 20.34 18.10 33.51
EV/EBITDA 14.18 17.86 23.44
EV/Sales 2.76 2.35 5.18
Earnings yield 4.00% 2.90% (1.50%)
Free cash flow yield 4.92% 5.53% 0.00%

Profitability

Metric DGX ICLR Diagnostics & Research median
Gross margin 33.11% 23.43% 48.32%
Operating margin 14.55% 8.72% (5.68%)
Net margin 9.50% 5.45% (4.10%)
Free cash flow margin 11.61% 10.41% 0.00%
Return on equity 14.76% 4.86% 0.00%
Return on assets 6.73% 2.74% (6.05%)
Return on invested capital 8.48% 3.84% 0.00%

Growth

Metric DGX ICLR Diagnostics & Research median
Revenue growth (TTM) 9.13% 1.82% 8.99%
EPS growth (last fiscal year) 13.78% (67.42%) 20.36%
Revenue growth, 5-year CAGR 3.18% 24.15% 7.30%
Net income growth, 5-year CAGR (7.06%) (7.15%) 0.00%

Health

Metric DGX ICLR Diagnostics & Research median
Debt to equity 0.70 0.37 0.01
Current ratio 1.70 1.32 2.27
Net debt to EBITDA 2.47 3.34 0.68

Dividend

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

Size

Metric DGX ICLR Diagnostics & Research median
Market cap 28.03b 15.11b 2.22b

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