GeneDx (NASDAQ:WGS) vs. Quest Diagnostics (NYSE:DGX) Financial Analysis

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$427.54 million	6.17	-$21.02 million	($3.64)	-24.29
Quest Diagnostics	$11.04 billion	2.36	$992.00 million	$9.42	25.07

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.

Profitability

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

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

Volatility and Risk

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

Analyst Ratings

This is a summary of recent ratings for GeneDx and Quest Diagnostics, as reported by MarketBeat.com.

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

GeneDx presently has a consensus price target of $89.57, indicating a potential upside of 1.33%. Quest Diagnostics has a consensus price target of $237.08, indicating a potential upside of 0.38%. Given GeneDx’s stronger consensus rating and higher probable upside, analysts plainly believe GeneDx is more favorable than Quest Diagnostics.

Insider & Institutional Ownership

61.7% of GeneDx shares are held by institutional investors. Comparatively, 88.1% of Quest Diagnostics shares are held by institutional investors. 25.2% of GeneDx shares are held by company insiders. Comparatively, 0.9% of Quest Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.