Analyzing Quest Diagnostics (NYSE:DGX) & DermTech (NYSE:DMTK)
Quest Diagnostics (NYSE:DGX) and DermTech (NASDAQ:DMTK) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
This table compares Quest Diagnostics and DermTech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Quest Diagnostics and DermTech’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quest Diagnostics||$7.53 billion||1.96||$736.00 million||$6.31||17.35|
Quest Diagnostics has higher revenue and earnings than DermTech.
Risk & Volatility
Quest Diagnostics has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, DermTech has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Quest Diagnostics and DermTech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quest Diagnostics presently has a consensus target price of $105.71, suggesting a potential downside of 3.43%. DermTech has a consensus target price of $15.00, suggesting a potential upside of 4.31%. Given DermTech’s stronger consensus rating and higher possible upside, analysts clearly believe DermTech is more favorable than Quest Diagnostics.
Institutional and Insider Ownership
88.0% of Quest Diagnostics shares are owned by institutional investors. Comparatively, 33.4% of DermTech shares are owned by institutional investors. 1.9% of Quest Diagnostics shares are owned by company insiders. Comparatively, 21.0% of DermTech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Quest Diagnostics beats DermTech on 7 of the 11 factors compared between the two stocks.
Quest Diagnostics Company Profile
Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic testing information and services, such as routine testing, 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, Athena Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, integrated delivery networks, health plans, employers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals. The company also offers risk assessment services for the life insurance industry; and health information technology solutions for healthcare organizations and clinicians. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.
DermTech Company Profile
DermTech, Inc., a molecular genomics company, develops and markets novel non-invasive diagnostic tests to diagnosis skin cancer and related conditions in the United States. The company offers Pigmented Lesion Assay (PLA), a gene expression test that helps rule out melanoma and the need for a surgical biopsy of atypical pigmented lesions. It also provides Nevome test, an adjunctive reflex test for the PLA; and adhesive skin sample collection kits, as well as gene expression assays for the Th1, Th2, IFN-gamma, and Th17 inflammatory pathways. The company sells its products to pathology and oncology practitioners. DermTech, Inc. was incorporated in 1995 and is headquartered in La Jolla, California.
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