GeneDx (NASDAQ:WGS) & Quest Diagnostics (NYSE:DGX) Head-To-Head Review

Quest Diagnostics (NYSE:DGX) and GeneDx (NASDAQ:WGS) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Quest Diagnostics and GeneDx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Diagnostics	0	7	5	1	2.54
GeneDx	1	0	7	1	2.89

Quest Diagnostics presently has a consensus target price of $237.08, suggesting a potential upside of 1.98%. GeneDx has a consensus target price of $89.57, suggesting a potential upside of 19.32%. Given GeneDx’s stronger consensus rating and higher possible upside, analysts clearly believe GeneDx is more favorable than Quest Diagnostics.

Earnings and Valuation

This table compares Quest Diagnostics and GeneDx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Diagnostics	$11.56 billion	2.22	$992.00 million	$9.42	24.68
GeneDx	$427.54 million	5.24	-$21.02 million	($3.64)	-20.62

Quest Diagnostics has higher revenue and earnings than GeneDx. GeneDx is trading at a lower price-to-earnings ratio than Quest Diagnostics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Quest Diagnostics has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, GeneDx has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Profitability

This table compares Quest Diagnostics and GeneDx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quest Diagnostics	9.18%	16.01%	7.27%
GeneDx	-23.41%	4.12%	2.26%

Institutional & Insider Ownership

88.1% of Quest Diagnostics shares are owned by institutional investors. Comparatively, 61.7% of GeneDx shares are owned by institutional investors. 0.9% of Quest Diagnostics shares are owned by insiders. Comparatively, 25.2% of GeneDx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Quest Diagnostics beats GeneDx on 8 of the 14 factors compared between the two stocks.

About Quest Diagnostics

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.