Financial Analysis: MDxHealth (NASDAQ:MDXH) vs. Quest Diagnostics (NYSE:DGX)

MDxHealth (NASDAQ:MDXHGet Rating) and Quest Diagnostics (NYSE:DGXGet Rating) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

12.6% of MDxHealth shares are held by institutional investors. Comparatively, 88.8% of Quest Diagnostics shares are held by institutional investors. 1.7% of MDxHealth shares are held by company insiders. Comparatively, 1.7% of Quest Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MDxHealth 0 0 3 0 3.00
Quest Diagnostics 1 6 3 0 2.20

MDxHealth currently has a consensus price target of $12.00, indicating a potential upside of 315.22%. Quest Diagnostics has a consensus price target of $150.91, indicating a potential upside of 14.73%. Given MDxHealth’s stronger consensus rating and higher possible upside, research analysts plainly believe MDxHealth is more favorable than Quest Diagnostics.

Earnings and Valuation

This table compares MDxHealth and Quest Diagnostics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MDxHealth $37.05 million 1.27 -$44.04 million ($1.90) -1.52
Quest Diagnostics $9.88 billion 1.48 $946.00 million $7.92 16.61

Quest Diagnostics has higher revenue and earnings than MDxHealth. MDxHealth 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 MDxHealth and Quest Diagnostics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MDxHealth -118.86% -218.20% -44.01%
Quest Diagnostics 9.57% 18.84% 8.94%

Volatility and Risk

MDxHealth has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Summary

Quest Diagnostics beats MDxHealth on 10 of the 12 factors compared between the two stocks.

About MDxHealth

(Get Rating)

MDxHealth SA, a commercial-stage precision diagnostics company, provides urologic solutions in the United States, the Netherlands, Belgium, Spain, Poland, Italy, rest of European Union, and internationally. Its novel prostate cancer genomic testing solutions are SelectMDx, a non-invasive urine test; and ConfirmMDx, an epigenetic test, which provide physicians with a clinical pathway to identify clinically prostate cancer while minimizing the use of invasive procedures that are prone to complications. The company was formerly known as OncoMethylome Sciences SA and changed its name to MDxHealth SA in October 2010. MDxHealth SA was incorporated in 2003 and is headquartered in Herstal, Belgium.

About Quest Diagnostics

(Get Rating)

Quest Diagnostics, Inc. engages in the provision of diagnostic testing, information and services. It operates through the Diagnostic Information Services (DIS) and All Other segments. The DIS segment offers diagnostic information services to patients, clinicians, hospitals, health plans, and employers. The All Other segment consists of risk assessment services, healthcare information technology, diagnostic products, and clinical trials testing businesses. The company was founded in 1967 and is headquartered in Secaucus, NJ.

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