Joint (JYNT) versus Quest Diagnostics (DGX) Critical Survey

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

Volatility & Risk

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Joint has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Joint -13.01% -66.74% -20.11%
Quest Diagnostics 10.00% 15.41% 7.17%

Valuation & Earnings

This table compares Joint and Quest Diagnostics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Joint $25.16 million 3.65 -$3.27 million ($0.25) -27.00
Quest Diagnostics $7.71 billion 1.72 $772.00 million $5.40 18.11

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

Institutional and Insider Ownership

49.6% of Joint shares are held by institutional investors. Comparatively, 88.6% of Quest Diagnostics shares are held by institutional investors. 6.1% of Joint shares are held by insiders. Comparatively, 1.8% of Quest Diagnostics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments 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 1.8%. Joint does not pay a dividend. Quest Diagnostics pays out 33.3% of its earnings in the form of a dividend. Quest Diagnostics has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Joint and Quest Diagnostics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Joint 0 0 4 0 3.00
Quest Diagnostics 0 11 8 0 2.42

Joint presently has a consensus price target of $6.15, indicating a potential downside of 8.89%. Quest Diagnostics has a consensus price target of $107.78, indicating a potential upside of 10.19%. Given Quest Diagnostics’ higher possible upside, analysts plainly believe Quest Diagnostics is more favorable than Joint.

Summary

Quest Diagnostics beats Joint on 11 of the 16 factors compared between the two stocks.

Joint Company Profile

The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.

Quest Diagnostics Company Profile

Quest Diagnostics Incorporated provides diagnostic testing information and services in the United States and internationally. The company's Diagnostic Information Services business segment develops and delivers diagnostic testing information and services, such as routine testing, non-routine and advanced clinical testing, gene-based and esoteric testing, anatomic pathology, and other diagnostic information services. This segment offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, Athena Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, integrated delivery networks, health plans, employers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals. Its Diagnostic Solutions segment offers risk assessment services for the life insurance industry; and health information technology solutions for healthcare organizations and clinicians. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

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