Reviewing Labcorp (NYSE:LH) and Amplifon (OTCMKTS:AMFPF)

Amplifon (OTCMKTS:AMFPF) and Labcorp (NYSE:LH) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Profitability

This table compares Amplifon and Labcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amplifon	4.74%	14.28%	3.89%
Labcorp	6.21%	15.85%	7.35%

Insider and Institutional Ownership

95.9% of Labcorp shares are owned by institutional investors. 0.8% of Labcorp 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.

Volatility and Risk

Amplifon has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Amplifon and Labcorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplifon	0	0	2	0	3.00
Labcorp	0	4	11	0	2.73

Labcorp has a consensus price target of $299.08, suggesting a potential upside of 18.67%. Given Labcorp’s higher probable upside, analysts clearly believe Labcorp is more favorable than Amplifon.

Valuation and Earnings

This table compares Amplifon and Labcorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplifon	$2.61 billion	1.35	$157.31 million	$0.56	27.78
Labcorp	$13.01 billion	1.61	$746.00 million	$10.18	24.76

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

Summary

Labcorp beats Amplifon on 12 of the 14 factors compared between the two stocks.

About Amplifon

Amplifon S.p.A. engages in the distribution of hearing solutions and the fitting of customized products that help people rediscover various emotions of sound in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company offers Ampli-easy, Ampli-connect, Ampli-energy, and Ampli-mini hearing devices. It also operates Ampli-care, a platform to deliver audiological care experience; and Amplifon App to manage the device functions in real-time directly from smartphone. Amplifon S.p.A. was founded in 1950 and is headquartered in Milan, Italy. Amplifon S.p.A.

About Labcorp

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.