Reviewing Labcorp (NYSE:LH) and Progyny (NASDAQ:PGNY)

Progyny (NASDAQ:PGNY) and Labcorp (NYSE:LH) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

94.9% of Progyny shares are owned by institutional investors. Comparatively, 95.9% of Labcorp shares are owned by institutional investors. 9.4% of Progyny shares are owned by insiders. Comparatively, 0.8% of Labcorp 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.

Analyst Ratings

This is a summary of current recommendations for Progyny and Labcorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progyny	0	3	9	1	2.85
Labcorp	0	5	10	0	2.67

Progyny currently has a consensus target price of $29.36, suggesting a potential upside of 19.70%. Labcorp has a consensus target price of $299.77, suggesting a potential upside of 11.83%. Given Progyny’s stronger consensus rating and higher possible upside, research analysts clearly believe Progyny is more favorable than Labcorp.

Profitability

This table compares Progyny and Labcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Progyny	4.46%	10.71%	7.27%
Labcorp	6.21%	15.85%	7.35%

Volatility & Risk

Progyny has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Labcorp has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Progyny and Labcorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progyny	$1.17 billion	1.81	$54.34 million	$0.63	38.94
Labcorp	$13.01 billion	1.71	$746.00 million	$10.18	26.33

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

Summary

Labcorp beats Progyny on 9 of the 15 factors compared between the two stocks.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

About Labcorp

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.