DaVita vs Labcorp
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KIRA’s take AI analyst
I put DaVita 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 $13.6B for DaVita.
- Labcorp grew revenue faster (7.3%, against 6.5%).
- DaVita kept more of each dollar of sales as operating profit (15.0% operating margin, against 9.9%).
- DaVita turned more of its sales into free cash flow (9.6% FCF margin, against 8.6%).
- DaVita earned a higher return on the capital invested in it (17.6%, against 8.2%).
- Investors pay more for each dollar of Labcorp’s earnings: a P/E of 27.3x 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.
DaVita
DVA
5/9
5-year growthOperating marginFCF marginReturn on capitalShare count change
Labcorp
LH
4/9
Revenue growthNet marginPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | DVA FY25 | LH FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.2B | $27.1B |
| Revenue | $13.6B | $14.0B |
| Free cash flow | $1.3B | $1.2B |
| Net income | $747M | $877M |
| Growth | ||
| Revenue growth | 6.5% | 7.3% |
| 5-year growth | 3.4% | −0.0% |
| Share count change | −13.1% | −0.7% |
| Profitability | ||
| Gross margin | — | 28.8% |
| Operating margin | 15.0% | 9.9% |
| Net margin | 5.5% | 6.3% |
| FCF margin | 9.6% | 8.6% |
| Return on capital | 17.6% | 8.2% |
| Return on equity | — | 10.5% |
| Balance sheet | ||
| Net debt | $9.6B | $5.1B |
| Net debt / EBITDA | 3.5x | 2.5x |
| Dividends and buybacks | $1.3B | $691M |
| Valuation & quality | ||
| P/E | 15.1x | 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.