Financial Review: Quest Diagnostics (NYSE:DGX) versus New York Health Care (OTCMKTS:BBAL)

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

Insider & Institutional Ownership

88.1% of Quest Diagnostics shares are held by institutional investors. 6.7% of New York Health Care shares are held by insiders. Comparatively, 8.2% of Quest Diagnostics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments 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 New York Health Care and Quest Diagnostics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New York Health Care	0	0	0	0	0.00
Quest Diagnostics	0	10	7	1	2.50

Quest Diagnostics has a consensus target price of $186.00, indicating a potential downside of 1.69%. Given New York Health Care’s higher probable upside, equities research analysts plainly believe New York Health Care is more favorable than Quest Diagnostics.

Valuation and Earnings

This table compares New York Health Care and Quest Diagnostics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New York Health Care	N/A	N/A	N/A	N/A	N/A
Quest Diagnostics	$9.87 billion	2.14	$871.00 million	$8.35	22.66

Quest Diagnostics has higher revenue and earnings than New York Health Care.

Profitability

This table compares New York Health Care and Quest Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New York Health Care	N/A	N/A	N/A
Quest Diagnostics	9.01%	15.24%	6.64%

Summary

Quest Diagnostics beats New York Health Care on 9 of the 10 factors compared between the two stocks.

About New York Health Care

New York Health Care, Inc. operates as a home care services agency primarily in New York. The company offers various home care services, such as companionship services, homemaker/housekeeper staff, professional and practical nurses, home health aides, care givers, geriatric care, and dementia and alzheimer care services. It also provides insurance services. The company was founded in 1983 and is based in Valley Stream, New York.

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.