Quest Diagnostics vs Labcorp
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KIRA’s take AI analyst
I put Quest Diagnostics and Labcorp side by side, using each one’s latest annual report. Here is what stands out:
- 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 27.3x against 24.2x for Quest Diagnostics.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Quest Diagnostics
DGX
8/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equity
Labcorp
LH
2/11
Piotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | DGX FY25 | LH FY25 |
|---|---|---|
| Size | ||
| Market cap | $27.2B | $27.1B |
| 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 | 24.2x | 27.3x |
| Piotroski F-score | 6 | 7 |
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.