Quest Diagnostics Incorporated (DGX) vs Labcorp Holdings Inc. (LH)

Quest Diagnostics Incorporated and Labcorp Holdings Inc. are both Diagnostics & Research companies. Quest Diagnostics Incorporated and Labcorp Holdings Inc. are of similar size ($29.5B and $28.0B). Quest Diagnostics Incorporated trades at the lower P/E: 25.0× against 29.5×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.13% against 6.02%. Quest Diagnostics Incorporated has the higher net margin (9.50% vs 6.88%) and the higher return on invested capital (8.48% vs 6.76%). Both pay a dividend; Quest Diagnostics Incorporated yields more (1.33% vs 0.79%). Across the 23 metrics below, Quest Diagnostics Incorporated leads on 17 and Labcorp Holdings Inc. on 6.

Valuation

Metric DGX LH Diagnostics & Research median
P/E 24.98 29.53 34.52
P/S 2.36 2.01 4.24
P/B 3.52 3.32 3.42
Price to free cash flow 20.34 25.40 33.51
EV/EBITDA 14.18 15.61 23.44
EV/Sales 2.76 2.36 5.18
Earnings yield 4.00% 3.39% (1.50%)
Free cash flow yield 4.92% 3.94% 0.00%

Profitability

Metric DGX LH Diagnostics & Research median
Gross margin 33.11% 28.96% 48.32%
Operating margin 14.55% 10.29% (5.68%)
Net margin 9.50% 6.88% (4.10%)
Free cash flow margin 11.61% 8.87% 0.00%
Return on equity 14.76% 11.45% 0.00%
Return on assets 6.73% 5.40% (6.05%)
Return on invested capital 8.48% 6.76% 0.00%

Growth

Metric DGX LH Diagnostics & Research median
Revenue growth (TTM) 9.13% 6.02% 8.99%
EPS growth (last fiscal year) 13.78% 18.33% 20.36%
Revenue growth, 5-year CAGR 3.18% (0.04%) 7.30%
Net income growth, 5-year CAGR (7.06%) (10.85%) 0.00%

Health

Metric DGX LH Diagnostics & Research median
Debt to equity 0.70 0.60 0.01
Current ratio 1.70 1.41 2.27
Net debt to EBITDA 2.47 2.23 0.68

Dividend

Metric DGX LH Diagnostics & Research median
Dividend yield 1.33% 0.79% 0.67%
Payout ratio 0.34 0.24 0.20

Size

Metric DGX LH Diagnostics & Research median
Market cap 28.03b 29.50b 2.22b

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