As a leading independent diagnostic laboratory, Labcorp participates in a highly attractive duopoly that offers favorable prospects as healthcare moves toward reformed payment models and enjoys a reprieve from scheduled cuts to Medicare reimbursement under the Protecting Access to Medicare Act, and as potentially positive M&A opportunities remain plentiful.
There is new bipartisan legislation proposed, the Results Act, which would create a less onerous and more representative method to collect the private-payer reimbursement data to help set Medicare payment rates.
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 after 2026.
|
Metric
|
LH
|
DGX
|
SHL
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.42 | 21.72 | 14.22 |
Price/Book Value | 2.86 | 3.38 | 1.09 |
Price/Sales | 1.76 | 2.25 | 0.84 |
Price/Cash Flow | 10.88 | 13.40 | 6.50 |
|
Metric
|
LH
|
DGX
|
SHL
|
|---|---|---|---|
Quick Ratio | 1.25 | 1.28 | 0.84 |
Current Ratio | 1.80 | 1.59 | 0.99 |
Interest Coverage | 6.43 | 6.17 | 4.98 |
|
Metric
|
LH
|
DGX
|
SHL
|
|---|---|---|---|
Return on Assets (Normalized) | 6.57% | 7.32% | 3.74% |
Return on Equity (Normalized) | 14.08% | 16.42% | 7.39% |
Return on Invested Capital (Normalized) | 9.11% | 10.01% | 5.35% |
|
1-Day Chart
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Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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TMO
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DHR
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A
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IQV
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MTD
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DGX
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United States