Reviewing Labcorp (NYSE:LH) and Agilon Health (NYSE:AGL)

Agilon Health (NYSE:AGL) and Labcorp (NYSE:LH) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Valuation & Earnings

This table compares Agilon Health and Labcorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilon Health	$5.93 billion	0.24	-$391.35 million	($21.56)	-4.03
Labcorp	$13.95 billion	1.86	$876.50 million	$12.09	26.21

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

Analyst Ratings

This is a summary of recent ratings for Agilon Health and Labcorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilon Health	3	7	5	0	2.13
Labcorp	0	3	9	0	2.75

Agilon Health presently has a consensus price target of $84.82, indicating a potential downside of 2.44%. Labcorp has a consensus price target of $326.82, indicating a potential upside of 3.12%. Given Labcorp’s stronger consensus rating and higher probable upside, analysts clearly believe Labcorp is more favorable than Agilon Health.

Insider & Institutional Ownership

95.9% of Labcorp shares are held by institutional investors. 2.5% of Agilon Health shares are held by insiders. Comparatively, 0.8% of Labcorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Agilon Health has a beta of 3.01, indicating that its stock price is 201% more volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Agilon Health	-3.92%	-122.70%	-17.24%
Labcorp	6.99%	16.74%	7.81%

Summary

Labcorp beats Agilon Health on 12 of the 14 factors compared between the two stocks.

About Agilon Health

agilon health, inc. provides healthcare services for seniors through primary care physicians in the communities of the United States. It offers a platform that manages the total healthcare needs of the patients by subscription-like per-member per-month. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.

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.