Contrasting Labcorp (NYSE:LH) and Sonic Healthcare (OTCMKTS:SKHHY)

Labcorp (NYSE:LH) and Sonic Healthcare (OTCMKTS:SKHHY) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Earnings & Valuation

This table compares Labcorp and Sonic Healthcare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Labcorp	$13.95 billion	1.61	$876.50 million	$10.46	26.16
Sonic Healthcare	$6.25 billion	1.12	$332.61 million	N/A	N/A

Labcorp has higher revenue and earnings than Sonic Healthcare.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Labcorp	6.28%	16.16%	7.62%
Sonic Healthcare	N/A	N/A	N/A

Dividends

Labcorp pays an annual dividend of $2.88 per share and has a dividend yield of 1.1%. Sonic Healthcare pays an annual dividend of $0.57 per share and has a dividend yield of 4.0%. Labcorp pays out 27.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Labcorp and Sonic Healthcare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Labcorp	0	3	8	0	2.73
Sonic Healthcare	1	1	0	0	1.50

Labcorp presently has a consensus target price of $307.20, suggesting a potential upside of 12.26%. Given Labcorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Labcorp is more favorable than Sonic Healthcare.

Volatility and Risk

Labcorp has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Sonic Healthcare has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

95.9% of Labcorp shares are owned by institutional investors. Comparatively, 0.0% of Sonic Healthcare shares are owned by institutional investors. 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 will outperform the market over the long term.

Summary

Labcorp beats Sonic Healthcare on 12 of the 14 factors compared between the two stocks.

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.

About Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.