Quest Diagnostics vs DaVita
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KIRA’s take AI analyst
I put Quest Diagnostics and DaVita side by side, using each one’s latest annual report. Here is what stands out:
- DaVita is the larger business, with $13.6B of revenue in fiscal 2025 against $11.0B for Quest Diagnostics.
- Quest Diagnostics grew revenue faster (11.8%, against 6.5%).
- DaVita kept more of each dollar of sales as operating profit (15.0% operating margin, against 14.1%).
- Quest Diagnostics turned more of its sales into free cash flow (12.3% FCF margin, against 9.6%).
- DaVita earned a higher return on the capital invested in it (17.6%, against 9.5%).
- Investors pay more for each dollar of Quest Diagnostics’s earnings: a P/E of 24.2x against 15.1x for DaVita.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Quest Diagnostics
DGX
4/9
Revenue growthNet marginFCF marginNet debt / EBITDA
DaVita
DVA
4/9
5-year growthOperating marginReturn on capitalShare count change
Side by side
Best in the row
| Latest fiscal year | DGX FY25 | DVA FY25 |
|---|---|---|
| Size | ||
| Market cap | $27.2B | $12.2B |
| Revenue | $11.0B | $13.6B |
| Free cash flow | $1.4B | $1.3B |
| Net income | $992M | $747M |
| Growth | ||
| Revenue growth | 11.8% | 6.5% |
| 5-year growth | 3.2% | 3.4% |
| Share count change | 0.0% | −13.1% |
| Profitability | ||
| Gross margin | 33.2% | — |
| Operating margin | 14.1% | 15.0% |
| Net margin | 9.0% | 5.5% |
| FCF margin | 12.3% | 9.6% |
| Return on capital | 9.5% | 17.6% |
| Return on equity | 14.2% | — |
| Balance sheet | ||
| Net debt | $5.3B | $9.6B |
| Net debt / EBITDA | 2.5x | 3.5x |
| Dividends and buybacks | $803M | $1.3B |
| Valuation & quality | ||
| P/E | 24.2x | 15.1x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.