Financial Review: Xcelerate (OTCMKTS:XCRT) vs. Quest Diagnostics (NYSE:DGX)

Quest Diagnostics (NYSE:DGX) and Xcelerate (OTCMKTS:XCRT) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Insider and Institutional Ownership

88.1% of Quest Diagnostics shares are owned by institutional investors. 8.2% of Quest Diagnostics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Diagnostics	0	8	8	2	2.67
Xcelerate	0	0	0	0	0.00

Quest Diagnostics presently has a consensus target price of $186.00, indicating a potential upside of 7.51%. Given Quest Diagnostics’ stronger consensus rating and higher possible upside, analysts plainly believe Quest Diagnostics is more favorable than Xcelerate.

Valuation and Earnings

This table compares Quest Diagnostics and Xcelerate”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Diagnostics	$9.87 billion	1.96	$871.00 million	$8.35	20.72
Xcelerate	N/A	N/A	N/A	N/A	N/A

Quest Diagnostics has higher revenue and earnings than Xcelerate.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quest Diagnostics	9.01%	15.24%	6.64%
Xcelerate	N/A	N/A	N/A

Risk & Volatility

Quest Diagnostics has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Xcelerate has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Summary

Quest Diagnostics beats Xcelerate on 10 of the 11 factors compared between the two stocks.

About Quest Diagnostics

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, 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, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

About Xcelerate

Xcelerate Inc. acquires engineering/patents and applies to early-stage medical technology companies. The company engages in the formulation, packaging and marketing of consumer health and beauty, and clinically tested skin care products; development of artificial intelligence and virtual health technology to assist patients; owning and licensing the rights to various forms of medical equipment. It also provides Ceramedx, a natural plant based therapeutic skin care product; Earth Science Beauty, which offers natural facial skincare targeted to specific skin types. The company was formerly known as Union Dental Holdings, Inc. and changed its name to Xcelerate Inc. Xcelerate Inc. was incorporated in 1996 is based in Mauldin, South Carolina.