Quest Diagnostics Incorporated (DGX) vs Natera, Inc. (NTRA)

Quest Diagnostics Incorporated and Natera, Inc. are both Diagnostics & Research companies. Natera, Inc. is the larger, with a market value of $52.4B against $28.0B — 1.9× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Quest Diagnostics Incorporated trades at 25.0×. Natera, Inc. grew revenue faster over the last twelve months: 37.4% against 9.13%. Quest Diagnostics Incorporated has the higher net margin (9.50% vs −5.66%) and the higher return on invested capital (8.48% vs −8.35%). Across the 20 metrics below, Quest Diagnostics Incorporated leads on 15 and Natera, Inc. on 5.

Valuation

Metric DGX NTRA Diagnostics & Research median
P/E 24.98 n/m 34.52
P/S 2.36 18.12 4.24
P/B 3.52 28.19 3.42
Price to free cash flow 20.34 1,004.35 33.51
EV/EBITDA 14.18 n/m 23.44
EV/Sales 2.76 17.87 5.18
Earnings yield 4.00% (0.31%) (1.50%)
Free cash flow yield 4.92% 0.10% 0.00%

Profitability

Metric DGX NTRA Diagnostics & Research median
Gross margin 33.11% 0.00% 48.32%
Operating margin 14.55% (8.95%) (5.68%)
Net margin 9.50% (5.66%) (4.10%)
Free cash flow margin 11.61% 1.80% 0.00%
Return on equity 14.76% (10.55%) 0.00%
Return on assets 6.73% (7.21%) (6.05%)
Return on invested capital 8.48% (8.35%) 0.00%

Growth

Metric DGX NTRA Diagnostics & Research median
Revenue growth (TTM) 9.13% 37.43% 8.99%
EPS growth (last fiscal year) 13.78% 0.65% 20.36%
Revenue growth, 5-year CAGR 3.18% 42.61% 7.30%
Net income growth, 5-year CAGR (7.06%) 0.00% 0.00%

Health

Metric DGX NTRA Diagnostics & Research median
Debt to equity 0.70 0.04 0.01
Current ratio 1.70 2.81 2.27
Net debt to EBITDA 2.47 3.74 0.68

Dividend

Metric DGX NTRA Diagnostics & Research median
Dividend yield 1.33% — 0.67%
Payout ratio 0.34 — 0.20

Size

Metric DGX NTRA Diagnostics & Research median
Market cap 28.03b 52.43b 2.22b

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