Analyzing Quest Diagnostics (NYSE:DGX) & Bioqual (OTCMKTS:BIOQ)

Quest Diagnostics (NYSE:DGX) and Bioqual (OTCMKTS:BIOQ) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Risk and Volatility

Quest Diagnostics has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Bioqual has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quest Diagnostics	9.01%	15.24%	6.64%
Bioqual	-2.14%	-2.90%	-1.87%

Dividends

Quest Diagnostics pays an annual dividend of $3.20 per share and has a dividend yield of 1.8%. Bioqual pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Quest Diagnostics pays out 38.3% of its earnings in the form of a dividend. Bioqual pays out -42.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Quest Diagnostics has increased its dividend for 14 consecutive years. Quest Diagnostics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

88.1% of Quest Diagnostics shares are owned by institutional investors. 8.2% of Quest Diagnostics shares are owned by insiders. Comparatively, 39.2% of Bioqual shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Quest Diagnostics and Bioqual, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Diagnostics	0	10	8	1	2.53
Bioqual	0	0	0	0	0.00

Quest Diagnostics currently has a consensus price target of $186.63, suggesting a potential upside of 2.09%. Given Quest Diagnostics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Quest Diagnostics is more favorable than Bioqual.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Diagnostics	$9.87 billion	2.07	$871.00 million	$8.35	21.89
Bioqual	$48.87 million	0.73	-$1.05 million	($1.18)	-33.90

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

Summary

Quest Diagnostics beats Bioqual on 16 of the 18 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 Bioqual

Bioqual, Inc. provides in-vivo and in-vitro pre-clinical research services to commercial and government clients in the United States. The company provides research services in the areas of COVID-19, AIDS, influenza, RSV infection, and flavivirus infections, including zika, dengue, malaria, hepatitis, and cancer. Its services also include sample processing, virus stock generation, quantitation of infectious virus, virus neutralization assays, hemagglutination inhibition assay, quantitative PCR, antigen and antibody ELISA detection assays, flow cytometry, lymphocyte proliferation, and other cell-based assays. In addition, the company provides animal research model related services. Bioqual, Inc. was founded in 1981 and is based in Rockville, Maryland.