As a leading independent diagnostic laboratory, LabCorp participates in a highly attractive duopoly that offers favorable prospects as healthcare moves toward reformed payment models, the easing of Medicare headwinds and potentially positive M&A opportunities.
Now that commercial payers are moving away from exclusive contracts with the large independent labs, we think the prospect of cutthroat pricing competition has eased.
If significant numbers of hospital-based labs are ill-equipped to comply with Medicare's payment reporting requirements, then reimbursement pressure could increase even more in 2024-26.
|
Metric
|
LH
|
MYGN
|
SHL
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.59 | — | 24.89 |
Price/Book Value | 2.16 | 2.12 | 1.66 |
Price/Sales | 1.46 | 2.03 | 1.52 |
Price/Cash Flow | 11.37 | — | 11.18 |
|
Metric
|
LH
|
MYGN
|
SHL
|
|---|---|---|---|
Quick Ratio | 0.82 | 1.64 | 0.78 |
Current Ratio | 1.17 | 2.01 | 0.94 |
Interest Coverage | 3.85 | −90.28 | 5.95 |
|
Metric
|
LH
|
MYGN
|
SHL
|
|---|---|---|---|
Return on Assets (Normalized) | 6.48% | −1.93% | 4.07% |
Return on Equity (Normalized) | 13.21% | −2.88% | 7.01% |
Return on Invested Capital (Normalized) | 8.69% | −2.33% | 4.52% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TMO
| Thermo Fisher Scientific Inc | Qyylbgctyq | Fxgj | $209.3 Bil | |
DHR
| Danaher Corp | Xkjnzgbgdp | Dfpthz | $174.8 Bil | |
IQV
| IQVIA Holdings Inc | Cnlbpcfw | Jwmqn | $41.3 Bil | |
IDXX
| IDEXX Laboratories Inc | Dbcrrkbtp | Nhlzgw | $39.6 Bil | |
A
| Agilent Technologies Inc | Gxzspddgx | Lwjqf | $39.2 Bil | |
MTD
| Mettler-Toledo International Inc | Syzkpvfks | Yfgyfn | $25.5 Bil | |
ICLR
| Icon PLC | Ykwldjrg | Nhrvm | $24.6 Bil | |
ILMN
| Illumina Inc | Mxfyxgrcb | Bhfhr | $18.6 Bil | |
WAT
| Waters Corp | Qglbgmkxq | Fzq | $18.0 Bil |
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