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
|
DGX
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.66 | — | 15.91 |
Price/Book Value | 2.34 | 2.22 | 2.37 |
Price/Sales | 1.50 | 2.06 | 1.67 |
Price/Cash Flow | 10.19 | — | 11.90 |
|
Metric
|
LH
|
MYGN
|
DGX
|
|---|---|---|---|
Quick Ratio | 0.96 | 0.96 | 0.88 |
Current Ratio | 1.36 | 1.27 | 1.12 |
Interest Coverage | 6.35 | −97.21 | 7.49 |
|
Metric
|
LH
|
MYGN
|
DGX
|
|---|---|---|---|
Return on Assets (Normalized) | 6.72% | −3.03% | 7.44% |
Return on Equity (Normalized) | 13.51% | −4.41% | 15.85% |
Return on Invested Capital (Normalized) | 9.13% | −3.64% | 9.88% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
TMO
| Thermo Fisher Scientific Inc | Cqff | $189.2 Bil | |
DHR
| Danaher Corp | Dprqp | $160.7 Bil | |
IDXX
| IDEXX Laboratories Inc | Kyrph | $44.1 Bil | |
IQV
| IQVIA Holdings Inc | Dlczh | $39.3 Bil | |
A
| Agilent Technologies Inc | Zdw | $37.2 Bil | |
MTD
| Mettler-Toledo International Inc | Yzdsj | $23.6 Bil | |
ICLR
| Icon PLC | Dsjbb | $22.4 Bil | |
ILMN
| Illumina Inc | Wbgygd | $17.9 Bil | |
WAT
| Waters Corp | Sthw | $17.3 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/adf521c2-d9af-477d-a6bc-03ec7ca34c40.jpg)