Quest Diagnostics Incorporated (DGX) vs Waters Corporation (WAT)

Quest Diagnostics Incorporated and Waters Corporation are both Diagnostics & Research companies. Waters Corporation is the larger, with a market value of $44.5B against $28.0B — 1.6× the size. Quest Diagnostics Incorporated trades at the lower P/E: 25.0× against 194×. Waters Corporation grew revenue faster over the last twelve months: 80.7% against 9.13%. Quest Diagnostics Incorporated has the higher net margin (9.50% vs 1.76%) and the higher return on invested capital (8.48% vs 1.13%). Across the 22 metrics below, Quest Diagnostics Incorporated leads on 15 and Waters Corporation on 7.

Valuation

Metric DGX WAT Diagnostics & Research median
P/E 24.98 193.97 34.52
P/S 2.36 7.96 4.24
P/B 3.52 2.94 3.42
Price to free cash flow 20.34 172.93 33.51
EV/EBITDA 14.18 51.94 23.44
EV/Sales 2.76 8.73 5.18
Earnings yield 4.00% 0.52% (1.50%)
Free cash flow yield 4.92% 0.58% 0.00%

Profitability

Metric DGX WAT Diagnostics & Research median
Gross margin 33.11% 49.53% 48.32%
Operating margin 14.55% 4.73% (5.68%)
Net margin 9.50% 1.76% (4.10%)
Free cash flow margin 11.61% 4.60% 0.00%
Return on equity 14.76% 0.00% 0.00%
Return on assets 6.73% 0.68% (6.05%)
Return on invested capital 8.48% 1.13% 0.00%

Growth

Metric DGX WAT Diagnostics & Research median
Revenue growth (TTM) 9.13% 80.69% 8.99%
EPS growth (last fiscal year) 13.78% 0.47% 20.36%
Revenue growth, 5-year CAGR 3.18% 6.00% 7.30%
Net income growth, 5-year CAGR (7.06%) 4.26% 0.00%

Health

Metric DGX WAT Diagnostics & Research median
Debt to equity 0.70 0.00 0.01
Current ratio 1.70 0.66 2.27
Net debt to EBITDA 2.47 0.36 0.68

Dividend

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

Size

Metric DGX WAT Diagnostics & Research median
Market cap 28.03b 44.51b 2.22b

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