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 ($26.4B and $26.4B). Quest Diagnostics Incorporated trades at the lower P/E: 24.6× against 26.2×. 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 (1.44% vs 0.90%). 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 24.63 26.18 35.56
P/S 2.26 1.81 4.37
P/B 3.34 3.02 3.06
Price to free cash flow 19.34 25.22 35.76
EV/EBITDA 14.07 14.51 24.35
EV/Sales 2.69 2.22 5.51
Earnings yield 4.06% 3.82% (1.89%)
Free cash flow yield 5.17% 3.97% (0.15%)

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% 25.92%
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 0.70

Dividend

Metric DGX LH Diagnostics & Research median
Dividend yield 1.44% 0.90% 0.66%
Payout ratio 0.36 0.24 0.20

Size

Metric DGX LH Diagnostics & Research median
Market cap 26.40b 26.36b 2.16b

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