Nobilis Health Corp (NYSE: HLTH) and Quest Diagnostics (NYSE:DGX) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Nobilis Health Corp and Quest Diagnostics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nobilis Health Corp N/A N/A N/A
Quest Diagnostics 9.28% 15.66% 7.24%

Earnings and Valuation

This table compares Nobilis Health Corp and Quest Diagnostics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nobilis Health Corp $321.25 million 0.35 $33.65 million N/A N/A
Quest Diagnostics $7.59 billion 1.64 $1.44 billion $4.96 18.44

Quest Diagnostics has higher revenue and earnings than Nobilis Health Corp.

Analyst Recommendations

This is a breakdown of recent ratings for Nobilis Health Corp and Quest Diagnostics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nobilis Health Corp 0 2 1 0 2.33
Quest Diagnostics 1 7 6 0 2.36

Nobilis Health Corp currently has a consensus target price of $2.25, indicating a potential upside of 55.17%. Quest Diagnostics has a consensus target price of $108.75, indicating a potential upside of 18.92%. Given Nobilis Health Corp’s higher possible upside, equities analysts plainly believe Nobilis Health Corp is more favorable than Quest Diagnostics.

Insider and Institutional Ownership

87.1% of Quest Diagnostics shares are held by institutional investors. 1.8% 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.

Dividends

Quest Diagnostics pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Nobilis Health Corp does not pay a dividend. Quest Diagnostics pays out 36.3% of its earnings in the form of a dividend. Quest Diagnostics has increased its dividend for 5 consecutive years.

Summary

Quest Diagnostics beats Nobilis Health Corp on 12 of the 15 factors compared between the two stocks.

About Nobilis Health Corp

Nobilis Health Corp. (Nobilis) owns and manages healthcare facilities in the States of Texas and Arizona, consisting primarily of ambulatory surgery centers (ASCs) and acute-care and surgical hospitals. The Company’s segments include Medical Services, Marketing Services and Corporate. The Medical Services segment owns and manages approximately nine healthcare facilities in Texas and Arizona; over four hospitals, and approximately five ambulatory surgery centers. The Marketing Services segment provides marketing services, patient education services and patient care co-ordination management services. The Company provides care across a range of specialties in its facilities, including orthopedic surgery, podiatric surgery, pain management, gastro-intestinal, gynecology, and general surgery. Many of its surgical patients require additional complementary healthcare services, and its suite of ancillary services, including surgical assist, intraoperative neuromonitoring and anesthesia.

About Quest Diagnostics

Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through two businesses: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs). Its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses, which offers solutions for healthcare providers. The Company’s services are provided under the Quest Diagnostics brand, but it also provides services under other brands, including AmeriPath, Dermpath Diagnostics, Focus Diagnostics, Athena Diagnostics, ExamOne, Quanum and Care360.

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