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 $58.4B against $26.4B — 2.2× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Quest Diagnostics Incorporated trades at 24.6×. Natera, Inc. grew revenue faster over the last twelve months: 37.8% against 9.87%. Quest Diagnostics Incorporated has the higher net margin (9.15% vs −7.11%) and the higher return on invested capital (7.94% vs −22.3%). Across the 20 metrics below, Quest Diagnostics Incorporated leads on 14 and Natera, Inc. on 6.

Valuation

Metric DGX NTRA Diagnostics & Research median
P/E 24.63 n/m 35.56
P/S 2.26 20.75 4.37
P/B 3.34 30.83 3.06
Price to free cash flow 19.34 667.04 35.76
EV/EBITDA 14.07 n/m 24.35
EV/Sales 2.69 20.48 5.51
Earnings yield 4.06% (0.35%) (1.89%)
Free cash flow yield 5.17% 0.15% (0.15%)

Profitability

Metric DGX NTRA Diagnostics & Research median
Gross margin 33.11% 65.23% 50.89%
Operating margin 14.10% (10.70%) (8.57%)
Net margin 9.15% (7.11%) (6.37%)
Free cash flow margin 11.67% 3.11% 0.00%
Return on equity 14.03% (12.54%) (2.92%)
Return on assets 6.43% (8.71%) (6.71%)
Return on invested capital 7.94% (22.34%) 0.00%

Growth

Metric DGX NTRA Diagnostics & Research median
Revenue growth (TTM) 9.87% 37.82% 7.69%
EPS growth (last fiscal year) 13.78% 0.65% 25.92%
Revenue growth, 5-year CAGR 3.18% 42.61% 7.40%
Net income growth, 5-year CAGR (7.06%) 0.00% 0.00%

Health

Metric DGX NTRA Diagnostics & Research median
Debt to equity 0.72 0.04 0.11
Current ratio 1.59 3.00 2.02
Net debt to EBITDA 2.47 3.74 0.70

Dividend

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

Size

Metric DGX NTRA Diagnostics & Research median
Market cap 26.40b 58.35b 2.16b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack