Analyzing Auna (NYSE:AUNA) and Quest Diagnostics (NYSE:DGX)

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

Insider and Institutional Ownership

88.1% of Quest Diagnostics shares are owned by institutional investors. 0.9% of Quest Diagnostics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Quest Diagnostics and Auna, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Diagnostics	0	7	5	1	2.54
Auna	1	2	1	1	2.40

Quest Diagnostics presently has a consensus target price of $236.31, suggesting a potential downside of 4.49%. Auna has a consensus target price of $6.97, suggesting a potential upside of 33.08%. Given Auna’s higher probable upside, analysts clearly believe Auna is more favorable than Quest Diagnostics.

Risk and Volatility

Quest Diagnostics has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Auna has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quest Diagnostics	9.18%	16.01%	7.27%
Auna	0.44%	12.88%	3.24%

Valuation & Earnings

This table compares Quest Diagnostics and Auna”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Diagnostics	$11.04 billion	2.47	$992.00 million	$9.42	26.26
Auna	$1.23 billion	0.31	$27.39 million	$0.07	74.79

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

Summary

Quest Diagnostics beats Auna on 11 of the 14 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 Auna

Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.