Concord Medical Services Holdings Limited (NYSE: CCM) and Quest Diagnostics (NYSE:DGX) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Concord Medical Services Holdings Limited and Quest Diagnostics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concord Medical Services Holdings Limited 0 0 0 0 N/A
Quest Diagnostics 1 7 5 1 2.43

Quest Diagnostics has a consensus price target of $108.75, indicating a potential upside of 17.07%. Given Quest Diagnostics’ higher possible upside, analysts clearly believe Quest Diagnostics is more favorable than Concord Medical Services Holdings Limited.

Valuation and Earnings

This table compares Concord Medical Services Holdings Limited and Quest Diagnostics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Concord Medical Services Holdings Limited $62.26 million 2.52 -$8.29 million N/A N/A
Quest Diagnostics $7.59 billion 1.67 $1.44 billion $4.96 18.73

Quest Diagnostics has higher revenue and earnings than Concord Medical Services Holdings Limited.

Profitability

This table compares Concord Medical Services Holdings Limited and Quest Diagnostics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Concord Medical Services Holdings Limited N/A N/A N/A
Quest Diagnostics 9.28% 15.66% 7.24%

Insider and Institutional Ownership

12.6% of Concord Medical Services Holdings Limited shares are held by institutional investors. Comparatively, 87.1% of Quest Diagnostics shares are held by institutional investors. 1.8% of Quest Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Quest Diagnostics pays an annual dividend of $1.80 per share and has a dividend yield of 1.9%. Concord Medical Services Holdings Limited does not pay a dividend. Quest Diagnostics pays out 36.3% of its earnings in the form of a dividend. Concord Medical Services Holdings Limited has raised its dividend for 5 consecutive years.

Volatility and Risk

Concord Medical Services Holdings Limited has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Summary

Quest Diagnostics beats Concord Medical Services Holdings Limited on 11 of the 15 factors compared between the two stocks.

Concord Medical Services Holdings Limited Company Profile

Concord Medical Services Holdings Limited is engaged in the leasing of radiotherapy and diagnostic imaging equipment, the provision of management services to hospitals. The Company is also engaged in hospital operations. The Company’s segments are network and premium cancer hospital. The Company operates a network of radiotherapy and diagnostic imaging centers in China. Its network consists of approximately 130 cooperative centers based in over 70 hospitals, spanning approximately 60 cities across 25 provinces and administrative regions in China. Its network includes approximately 60 radiotherapy centers and over 60 diagnostic imaging centers and approximately seven centers. The Company’s cooperative centers are equipped with a primary unit of medical equipment, such as a linear accelerator, head gamma knife system, body gamma knife system, positron emission tomography-computed tomography (PET-CT) scanner or magnetic resonance imaging (MRI) scanner.

Quest Diagnostics Company Profile

Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through two businesses: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs). Its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses, which offers solutions for healthcare providers. The Company’s services are provided under the Quest Diagnostics brand, but it also provides services under other brands, including AmeriPath, Dermpath Diagnostics, Focus Diagnostics, Athena Diagnostics, ExamOne, Quanum and Care360.

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