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

Quest Diagnostics Incorporated and Labcorp Holdings Inc. are both Diagnostics & Research companies. Quest Diagnostics Incorporated is the larger, with a market value of $26.2B against $21.9B — 1.2× the size. Quest Diagnostics Incorporated trades at the lower P/E: 24.8× against 25.4×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.87% against 6.41%. Quest Diagnostics Incorporated has the higher net margin (9.15% vs 6.99%) and the higher return on invested capital (7.94% vs 6.50%). Both pay a dividend; Quest Diagnostics Incorporated yields more (2.30% vs 0.98%). Across the 23 metrics below, Quest Diagnostics Incorporated leads on 16 and Labcorp Holdings Inc. on 7.

Valuation

Metric DGX LH Diagnostics & Research median
P/E 24.77 25.44 33.95
P/S 2.27 1.76 4.87
P/B 3.35 2.94 3.12
Price to free cash flow 19.45 24.51 34.02
EV/EBITDA 14.14 14.70 25.20
EV/Sales 2.70 2.25 5.66
Earnings yield 4.04% 3.93% (1.75%)
Free cash flow yield 5.14% 4.08% (0.13%)

Profitability

Metric DGX LH Diagnostics & Research median
Gross margin 33.11% 28.88% 50.89%
Operating margin 14.10% 10.43% (8.57%)
Net margin 9.15% 6.99% (6.37%)
Free cash flow margin 11.67% 8.16% 0.00%
Return on equity 14.03% 11.74% (2.92%)
Return on assets 6.43% 5.48% (6.71%)
Return on invested capital 7.94% 6.50% 0.00%

Growth

Metric DGX LH Diagnostics & Research median
Revenue growth (TTM) 9.87% 6.41% 7.69%
EPS growth (last fiscal year) 13.78% 18.33% —
Revenue growth, 5-year CAGR 3.18% (0.04%) 7.40%
Net income growth, 5-year CAGR (7.06%) (10.85%) 0.00%

Health

Metric DGX LH Diagnostics & Research median
Debt to equity 0.72 0.69 0.11
Current ratio 1.59 1.80 2.02
Net debt to EBITDA 2.47 2.23 0.78

Dividend

Metric DGX LH Diagnostics & Research median
Dividend yield 2.30% 0.98% 0.70%
Payout ratio 0.29 0.27 0.00

Size

Metric DGX LH Diagnostics & Research median
Market cap 26.19b 21.86b 2.56b

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