Head-To-Head Survey: Exagen (NASDAQ:XGN) vs. Quest Diagnostics (NYSE:DGX)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Exagen and Quest Diagnostics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exagen	1	0	7	1	2.89
Quest Diagnostics	0	5	3	1	2.56

Exagen presently has a consensus price target of $9.88, indicating a potential upside of 132.35%. Quest Diagnostics has a consensus price target of $248.70, indicating a potential downside of 4.48%. Given Exagen’s stronger consensus rating and higher possible upside, research analysts clearly believe Exagen is more favorable than Quest Diagnostics.

Volatility and Risk

Exagen has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares Exagen and Quest Diagnostics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exagen	$66.57 million	1.63	-$19.95 million	($0.75)	-5.67
Quest Diagnostics	$11.04 billion	2.60	$992.00 million	$10.04	25.93

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

Insider & Institutional Ownership

75.2% of Exagen shares are owned by institutional investors. Comparatively, 88.1% of Quest Diagnostics shares are owned by institutional investors. 10.4% of Exagen shares are owned by company insiders. Comparatively, 0.9% of Quest Diagnostics shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Exagen	-25.14%	-125.60%	-33.46%
Quest Diagnostics	9.53%	16.21%	7.41%

Summary

Quest Diagnostics beats Exagen on 9 of the 14 factors compared between the two stocks.

About Exagen

Exagen Inc. is a diagnostics company focused on testing for autoimmune and rheumatic diseases. It develops and provides blood tests intended to help physicians assess and monitor conditions such as systemic lupus erythematosus and other connective tissue diseases. The company’s AVISE test portfolio includes diagnostic and monitoring tests that use proprietary biomarkers to support clinical evaluation. Its offerings are designed to provide information that may help clinicians distinguish among autoimmune conditions and guide patient care.

About Quest Diagnostics

Quest Diagnostics (NYSE: DGX) is a provider of diagnostic information services, conducting laboratory tests that help physicians and other health care professionals diagnose, monitor and manage medical conditions. Its services include routine blood and other clinical laboratory testing, anatomic pathology, and specialized molecular and genetic testing. The company serves patients, physicians, hospitals, health plans, employers and government organizations. In addition to testing performed through its laboratories and patient service centers, Quest offers services such as workplace drug testing and diagnostic support for clinical research.