Analyzing Laboratory Co. of America (NYSE:LH) and Grail (NASDAQ:GRAL)

Grail (NASDAQ:GRAL) and Laboratory Co. of America (NYSE:LH) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Grail and Laboratory Co. of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grail	N/A	N/A	N/A
Laboratory Co. of America	3.43%	15.27%	7.13%

Earnings & Valuation

This table compares Grail and Laboratory Co. of America”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grail	N/A	N/A	N/A	N/A	N/A
Laboratory Co. of America	$12.16 billion	1.64	$418.00 million	$5.17	46.16

Laboratory Co. of America has higher revenue and earnings than Grail.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Grail and Laboratory Co. of America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grail	0	2	0	0	2.00
Laboratory Co. of America	0	4	10	1	2.80

Laboratory Co. of America has a consensus price target of $255.92, suggesting a potential upside of 7.24%. Given Laboratory Co. of America’s stronger consensus rating and higher probable upside, analysts plainly believe Laboratory Co. of America is more favorable than Grail.

Institutional and Insider Ownership

95.9% of Laboratory Co. of America shares are owned by institutional investors. 0.9% of Laboratory Co. of America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Laboratory Co. of America beats Grail on 10 of the 10 factors compared between the two stocks.

About Grail

GRAIL, Inc., a biotechnology company, focuses on developing technologies for early cancer detection. The company develops Galleri, a screening test for asymptomatic individuals over 50 years of age; and DAC, a diagnostic aid for cancer tests to accelerate diagnostic resolution for patients for whom there is a clinical suspicion of cancer. It is also developing minimal residual disease and other post-diagnostic tests. The company was incorporated in 2015 and is based in Menlo Park, California. GRAIL, Inc. operates as a former subsidiary of Illumina, Inc.

About Laboratory Co. of America

Labcorp Holdings Inc. provides laboratory services. It operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services. The company offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid, PAP, hemoglobin A1C and vitamin D, prostate-specific antigens, sexually transmitted diseases, hepatitis C, microbiology cultures and procedures, and alcohol and other substance-abuse tests. It also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases; services related to anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women’s health, pharmacogenetics, parentage and donor testing, occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests; and health and wellness services to employers and managed care organizations (MCOs). In addition, the company offers online and mobile applications that enable patients to check test results; online applications for providers, MCOs, and accountable care organizations; specimen collection services; and drug development, medical device, and companion diagnostic development solutions, as well as support for crop protection and chemical testing. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; and MCOs, employer plans, other health insurance providers, governmental agencies, physicians and other healthcare providers, hospitals and health systems, employers, patients and consumers, contract research organizations, crop protection and chemical companies, academic institutions, independent clinical laboratories, and retailers. The company was founded in 1995 is headquartered in Burlington, North Carolina.