Laboratory Corporation of America Holdings (NYSE: LH) is one of 49 publicly-traded companies in the “Healthcare Facilities & Services” industry, but how does it weigh in compared to its rivals? We will compare Laboratory Corporation of America Holdings to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, earnings, valuation and risk.

Institutional and Insider Ownership

93.2% of Laboratory Corporation of America Holdings shares are held by institutional investors. Comparatively, 73.5% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 0.9% of Laboratory Corporation of America Holdings shares are held by insiders. Comparatively, 12.8% of shares of all “Healthcare Facilities & Services” companies are held 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.

Earnings and Valuation

This table compares Laboratory Corporation of America Holdings and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Laboratory Corporation of America Holdings $9.67 billion $1.86 billion 21.37
Laboratory Corporation of America Holdings Competitors $5.72 billion $906.68 million 38.74

Laboratory Corporation of America Holdings has higher revenue and earnings than its rivals. Laboratory Corporation of America Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for Laboratory Corporation of America Holdings and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laboratory Corporation of America Holdings 0 5 6 0 2.55
Laboratory Corporation of America Holdings Competitors 258 1480 1913 38 2.47

Laboratory Corporation of America Holdings presently has a consensus target price of $165.10, indicating a potential upside of 8.49%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 8.42%. Given Laboratory Corporation of America Holdings’ stronger consensus rating and higher probable upside, equities analysts clearly believe Laboratory Corporation of America Holdings is more favorable than its rivals.

Risk and Volatility

Laboratory Corporation of America Holdings has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Laboratory Corporation of America Holdings’ rivals have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Laboratory Corporation of America Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laboratory Corporation of America Holdings 7.57% 16.85% 6.55%
Laboratory Corporation of America Holdings Competitors 6.86% 0.02% 0.39%

Summary

Laboratory Corporation of America Holdings beats its rivals on 9 of the 13 factors compared.

About Laboratory Corporation of America Holdings

Laboratory Corporation of America Holdings is a life sciences company that is integrated in guiding patient care, providing clinical laboratory and end-to-end drug development services. The Company operates as a healthcare diagnostics company. The Company operates through two segments: LabCorp Diagnostics (LCD) and Covance Drug Development (CDD). The LCD segment is an independent clinical laboratory business, which offers menu of frequently requested and specialty testing through an integrated network of primary and specialty laboratories across the United States. The CDD segment offers drug development services, and provides a range of drug research and development (R&D) and market access services to biopharmaceutical companies and medical device companies across the world. It serves a range of customers, including managed care organizations (MCOs), biopharmaceutical companies, governmental agencies, physicians and other healthcare providers.

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