Quest Diagnostics vs Labcorp
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The short version
- Labcorp is the larger business, with $14.0B of revenue in fiscal 2025 against $11.0B for Quest Diagnostics.
- Quest Diagnostics grew revenue faster (11.8%, against 7.3%).
- Quest Diagnostics kept more of each dollar of sales as operating profit (14.1% operating margin, against 9.9%).
- Quest Diagnostics turned more of its sales into free cash flow (12.3% FCF margin, against 8.6%).
- Quest Diagnostics earned a higher return on the capital invested in it (9.5%, against 8.2%).
- Investors pay more for each dollar of Labcorp’s earnings: a P/E of 27.2x against 24.1x for Quest Diagnostics.
| Latest fiscal year | DGX · FY25 | LH · FY25 |
|---|---|---|
| Size | ||
| Market cap | $27.1B | $27.0B |
| Revenue | $11.0B | $14.0B |
| Free cash flow | $1.4B | $1.2B |
| Net income | $992M | $877M |
| Growth | ||
| Revenue growth | 11.8% | 7.3% |
| 5-year growth | 3.2% | −0.0% |
| Share count change | 0.0% | −0.7% |
| Profitability | ||
| Gross margin | 33.2% | 28.8% |
| Operating margin | 14.1% | 9.9% |
| Net margin | 9.0% | 6.3% |
| FCF margin | 12.3% | 8.6% |
| Return on capital | 9.5% | 8.2% |
| Return on equity | 14.2% | 10.5% |
| Balance sheet | ||
| Net debt | $5.3B | $5.1B |
| Net debt / EBITDA | 2.5x | 2.5x |
| Dividends and buybacks | $803M | $691M |
| Valuation & quality | ||
| P/E | 24.1x | 27.2x |
| Piotroski F-score | 6 | 7 |
Revenue
FY16
DGX $7.2B
LH $9.6B
FY17
DGX $7.4B
LH $10.3B
FY18
DGX $7.5B
LH $11.3B
FY19
DGX $7.7B
LH $11.6B
FY20
DGX $9.4B
LH $14.0B
FY21
DGX $10.8B
LH $13.1B
FY22
DGX $9.9B
LH $11.9B
FY23
DGX $9.3B
LH $12.2B
FY24
DGX $9.9B
LH $13.0B
FY25
DGX $11.0B
LH $14.0B
DGX
LH
Operating margin
FY16
DGX 17.7%
LH 13.3%
FY17
DGX 15.7%
LH 12.7%
FY18
DGX 14.6%
LH 11.7%
FY19
DGX 15.9%
LH 11.5%
FY20
DGX 20.9%
LH 17.5%
FY21
DGX 22.1%
LH 23.2%
FY22
DGX 14.5%
LH 12.1%
FY23
DGX 13.6%
LH 6.0%
FY24
DGX 13.6%
LH 8.4%
FY25
DGX 14.1%
LH 9.9%
DGX
LH
Free cash flow
FY16
DGX $823M
LH $918M
FY17
DGX $923M
LH $1.2B
FY18
DGX $817M
LH $926M
FY19
DGX $843M
LH $1.0B
FY20
DGX $1.6B
LH $1.8B
FY21
DGX $1.8B
LH $2.7B
FY22
DGX $1.3B
LH $1.5B
FY23
DGX $864M
LH $874M
FY24
DGX $909M
LH $1.1B
FY25
DGX $1.4B
LH $1.2B
DGX
LH
Return on capital
FY16
DGX 9.5%
LH 7.9%
FY17
DGX 10.7%
LH 10.9%
FY18
DGX 10.0%
LH 7.1%
FY19
DGX 10.4%
LH 7.6%
FY20
DGX 15.7%
LH 12.6%
FY21
DGX 19.0%
LH 16.6%
FY22
DGX 11.7%
LH 8.0%
FY23
DGX 9.9%
LH 3.7%
FY24
DGX 9.0%
LH 6.9%
FY25
DGX 9.5%
LH 8.2%
DGX
LH
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.