Laboratory Corp. of America (NYSE: LH) and Genomic Health (NASDAQ:GHDX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Earnings & Valuation
This table compares Laboratory Corp. of America and Genomic Health’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Laboratory Corp. of America||$10.44 billion||1.75||$1.27 billion||$9.60||18.70|
|Genomic Health||$340.75 million||5.23||-$3.85 million||$0.01||5,040.00|
Laboratory Corp. of America has higher revenue and earnings than Genomic Health. Laboratory Corp. of America is trading at a lower price-to-earnings ratio than Genomic Health, indicating that it is currently the more affordable of the two stocks.
This table compares Laboratory Corp. of America and Genomic Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Laboratory Corp. of America||11.52%||16.33%||6.49%|
Insider & Institutional Ownership
92.4% of Laboratory Corp. of America shares are held by institutional investors. Comparatively, 89.8% of Genomic Health shares are held by institutional investors. 0.7% of Laboratory Corp. of America shares are held by company insiders. Comparatively, 45.8% of Genomic Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Laboratory Corp. of America has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Genomic Health has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Laboratory Corp. of America and Genomic Health, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Laboratory Corp. of America||0||4||12||0||2.75|
Laboratory Corp. of America currently has a consensus target price of $192.31, indicating a potential upside of 7.12%. Genomic Health has a consensus target price of $33.25, indicating a potential downside of 34.03%. Given Laboratory Corp. of America’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Laboratory Corp. of America is more favorable than Genomic Health.
Laboratory Corp. of America beats Genomic Health on 11 of the 14 factors compared between the two stocks.
About Laboratory Corp. of America
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It operates through two segments, LabCorp Diagnostics and Covance Drug Development. It offers a range of clinical laboratory tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, hemoglobin A1C, prostate-specific antigen, tests for sexually-transmitted diseases, hepatitis C tests, vitamin D, microbiology cultures and procedures, and alcohol and other substance-abuse tests that are used by hospitals, physicians and other healthcare providers and commercial clients to assist in the diagnosis, monitoring and treatment of diseases and medical conditions through the examination of substances in blood, tissues, and other specimens. The company also provides specialty testing services in the areas of women's health, allergy, diagnostic genetics, cardiovascular disease, infectious disease, endocrinology, oncology, coagulation, pharmacogenetics, toxicology, medical drug monitoring, and pain management; and esoteric testing, cancer diagnostics, and other complex procedures. In addition, it provides drug development solutions and laboratory testing services; and testing services through a sales force to the managed care organizations, biopharmaceutical companies, governmental agencies, physicians and other healthcare providers, hospitals and health systems, employers, patients and consumers, contract research organizations, food and nutritional companies, and independent clinical laboratories. The company has collaboration with university, hospital and academic institutions, such as Boston University, Columbia University, Duke University, Johns Hopkins University, The Mount Sinai Hospital, the University of Tennessee, and Yale University to license and commercialize new diagnostic tests. Laboratory Corporation of America Holdings was founded in 1971 and is headquartered in Burlington, North Carolina.
About Genomic Health
Genomic Health, Inc., a healthcare company, provides actionable genomic information to personalize cancer treatment decisions worldwide. It develops and commercializes genomic-based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. The company offers the Oncotype DX invasive breast cancer test that is used for early stage invasive breast cancer patients to predict the breast cancer recurrence and chemotherapy benefit. It also provides the Oncotype DX colon cancer test, which is used to predict the likelihood of colon cancer recurrence in patients with stage II disease, as well as for use in patients with stage III disease treated with oxaliplatin-containing adjuvant therapy. In addition, the company provides the Oncotype DX tests for patients with ductal carcinoma in situ, a pre-invasive form of breast cancer; the Oncotype DX prostate cancer test, which provides a genomic prostate score to predict disease aggressiveness in men with low risk disease, as well as used to enhance treatment decisions for prostate cancer patients in conjunction with the Gleason score or tumor grading; and Oncotype DX AR-V7 Nucleus Detect test for men with metastatic castration-resistant prostate cancer. The company offers its products through a network of distributors. Genomic Health, Inc. has collaboration agreement with Epic Sciences, Inc.; license and development agreement with Biocartis N.V.; license agreement with Cleveland Diagnostics, Inc.; and a research collaboration agreement with Janssen Pharmaceuticals. The company was founded in 2000 and is based in Redwood City, California.
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