Reviewing Quest Diagnostics (NYSE:DGX) and Aveanna Healthcare (NASDAQ:AVAH)

Aveanna Healthcare (NASDAQ:AVAH) and Quest Diagnostics (NYSE:DGX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

88.0% of Aveanna Healthcare shares are owned by institutional investors. Comparatively, 88.1% of Quest Diagnostics shares are owned by institutional investors. 7.0% of Aveanna Healthcare shares are owned by insiders. Comparatively, 8.2% of Quest Diagnostics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Aveanna Healthcare and Quest Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aveanna Healthcare	0.85%	-54.56%	3.17%
Quest Diagnostics	8.91%	15.47%	6.84%

Earnings & Valuation

This table compares Aveanna Healthcare and Quest Diagnostics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aveanna Healthcare	$2.02 billion	0.99	-$10.93 million	$0.08	120.38
Quest Diagnostics	$9.87 billion	2.03	$871.00 million	$8.52	21.18

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Aveanna Healthcare and Quest Diagnostics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aveanna Healthcare	0	6	3	0	2.33
Quest Diagnostics	0	10	8	1	2.53

Aveanna Healthcare currently has a consensus price target of $8.36, indicating a potential downside of 13.22%. Quest Diagnostics has a consensus price target of $196.31, indicating a potential upside of 8.77%. Given Quest Diagnostics’ stronger consensus rating and higher possible upside, analysts plainly believe Quest Diagnostics is more favorable than Aveanna Healthcare.

Risk and Volatility

Aveanna Healthcare has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Summary

Quest Diagnostics beats Aveanna Healthcare on 13 of the 15 factors compared between the two stocks.

About Aveanna Healthcare

Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. Its patient-centered care delivery platform allows patients to remain in their homes and minimizes the overutilization of high-cost care settings, such as hospitals or skilled nursing facilities. The company operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment offers PDN services, which include in-home skilled nursing services to medically fragile children and adults; nursing services in school settings in which its caregivers accompany patients to school; services to patients in its pediatric day healthcare centers; and employer of record support and personal care services, as well as in-clinic and home-based therapy services, such as physical, occupational, and speech services. The HHH segment provides home health services, including in-home skilled nursing services; physical, occupational, and speech therapy services; and medical social and aide services, as well as hospice services for patients and their families when a life-limiting illness no longer responds to cure-oriented treatments. The MS segment offers enteral nutrition supplies and other products, including formulas, supplies, and pumps to adults and children delivered on a periodic or as-needed basis. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

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.