Quest Diagnostics (NYSE:DGX) versus Exagen (NASDAQ:XGN) Critical Comparison

Quest Diagnostics (NYSE:DGX) and Exagen (NASDAQ:XGN) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Volatility & Risk

Quest Diagnostics has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Exagen has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Quest Diagnostics and Exagen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Diagnostics	0	5	3	1	2.56
Exagen	1	0	7	1	2.89

Quest Diagnostics presently has a consensus price target of $248.70, indicating a potential downside of 3.66%. Exagen has a consensus price target of $10.12, indicating a potential upside of 92.49%. Given Exagen’s stronger consensus rating and higher possible upside, analysts clearly believe Exagen is more favorable than Quest Diagnostics.

Insider & Institutional Ownership

88.1% of Quest Diagnostics shares are owned by institutional investors. Comparatively, 75.2% of Exagen shares are owned by institutional investors. 0.9% of Quest Diagnostics shares are owned by company insiders. Comparatively, 10.4% of Exagen shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Quest Diagnostics and Exagen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quest Diagnostics	9.53%	16.21%	7.41%
Exagen	-26.61%	-104.46%	-28.93%

Earnings and Valuation

This table compares Quest Diagnostics and Exagen”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Diagnostics	$11.04 billion	2.57	$992.00 million	$10.04	25.71
Exagen	$66.57 million	1.91	-$19.95 million	($0.81)	-6.49

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

Summary

Quest Diagnostics beats Exagen on 8 of the 13 factors compared between the two stocks.

About Quest Diagnostics

Quest Diagnostics (NYSE: DGX) is a provider of diagnostic information services, conducting laboratory tests that help physicians and other health care professionals diagnose, monitor and manage medical conditions. Its services include routine blood and other clinical laboratory testing, anatomic pathology, and specialized molecular and genetic testing. The company serves patients, physicians, hospitals, health plans, employers and government organizations. In addition to testing performed through its laboratories and patient service centers, Quest offers services such as workplace drug testing and diagnostic support for clinical research.

About Exagen

Exagen Inc. is a commercial-stage diagnostic company focused on improving the diagnosis and management of autoimmune and rheumatic diseases. The company develops and commercializes blood tests that help physicians identify autoimmune disease, distinguish among related conditions and monitor disease activity over time. Its principal product family is AVISE, which includes the AVISE CTD and AVISE Lupus tests, as well as monitoring and specialty tests used in the evaluation of systemic lupus erythematosus and other connective-tissue diseases.