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 $44.6B against $26.4B — 1.7× the size. Quest Diagnostics Incorporated trades at the lower P/E: 24.6× against 32.8×. 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 24.63 32.83 35.56
P/S 2.26 2.61 4.37
P/B 3.34 7.04 3.06
Price to free cash flow 19.34 19.62 35.76
EV/EBITDA 14.07 17.10 24.35
EV/Sales 2.69 3.43 5.51
Earnings yield 4.06% 3.05% (1.89%)
Free cash flow yield 5.17% 5.10% (0.15%)

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% 25.92%
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 0.70

Dividend

Metric DGX IQV Diagnostics & Research median
Dividend yield 1.44% — 0.66%
Payout ratio 0.36 — 0.20

Size

Metric DGX IQV Diagnostics & Research median
Market cap 26.40b 44.61b 2.16b

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