Quest Diagnostics Incorporated (DGX) vs IQVIA Holdings Inc. (IQV)

Quest Diagnostics Incorporated and IQVIA Holdings Inc. are both Diagnostics & Research companies. IQVIA Holdings Inc. is the larger, with a market value of $45.3B against $26.2B — 1.7× the size. Quest Diagnostics Incorporated trades at the lower P/E: 24.8× against 33.3×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.87% against 8.17%. Quest Diagnostics Incorporated has the higher net margin (9.15% vs 8.10%) and the higher return on invested capital (7.94% vs 6.80%). Across the 22 metrics below, Quest Diagnostics Incorporated leads on 18 and IQVIA Holdings Inc. on 4.

Valuation

Metric DGX IQV Diagnostics & Research median
P/E 24.77 33.26 33.95
P/S 2.27 2.64 4.87
P/B 3.35 7.13 3.12
Price to free cash flow 19.45 19.88 34.02
EV/EBITDA 14.14 17.27 25.20
EV/Sales 2.70 3.46 5.66
Earnings yield 4.04% 3.01% (1.75%)
Free cash flow yield 5.14% 5.03% (0.13%)

Profitability

Metric DGX IQV Diagnostics & Research median
Gross margin 33.11% 32.97% 50.89%
Operating margin 14.10% 12.95% (8.57%)
Net margin 9.15% 8.10% (6.37%)
Free cash flow margin 11.67% 13.30% 0.00%
Return on equity 14.03% 22.75% (2.92%)
Return on assets 6.43% 4.70% (6.71%)
Return on invested capital 7.94% 6.80% 0.00%

Growth

Metric DGX IQV Diagnostics & Research median
Revenue growth (TTM) 9.87% 8.17% 7.69%
EPS growth (last fiscal year) 13.78% 4.67% —
Revenue growth, 5-year CAGR 3.18% 7.50% 7.40%
Net income growth, 5-year CAGR (7.06%) 37.27% 0.00%

Health

Metric DGX IQV Diagnostics & Research median
Debt to equity 0.72 2.54 0.11
Current ratio 1.59 0.71 2.02
Net debt to EBITDA 2.47 4.06 0.78

Dividend

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

Size

Metric DGX IQV Diagnostics & Research median
Market cap 26.19b 45.27b 2.56b

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