The Joint Corp. (NASDAQ: JYNT) and Laboratory Corporation of America Holdings (NYSE:LH) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Risk & Volatility
The Joint Corp. has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Laboratory Corporation of America Holdings has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for The Joint Corp. and Laboratory Corporation of America Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Joint Corp.||0||0||4||0||3.00|
|Laboratory Corporation of America Holdings||0||5||7||0||2.58|
The Joint Corp. presently has a consensus price target of $6.15, indicating a potential upside of 5.49%. Laboratory Corporation of America Holdings has a consensus price target of $168.91, indicating a potential upside of 12.67%. Given Laboratory Corporation of America Holdings’ higher probable upside, analysts plainly believe Laboratory Corporation of America Holdings is more favorable than The Joint Corp..
Valuation & Earnings
This table compares The Joint Corp. and Laboratory Corporation of America Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The Joint Corp.||$20.52 million||3.84||-$15.17 million||($0.69)||-8.45|
|Laboratory Corporation of America Holdings||$9.64 billion||1.58||$732.10 million||$7.17||20.91|
Laboratory Corporation of America Holdings has higher revenue and earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than Laboratory Corporation of America Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares The Joint Corp. and Laboratory Corporation of America Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Joint Corp.||-36.74%||-94.08%||-32.16%|
|Laboratory Corporation of America Holdings||7.40%||16.75%||6.43%|
Institutional & Insider Ownership
47.3% of The Joint Corp. shares are owned by institutional investors. Comparatively, 93.5% of Laboratory Corporation of America Holdings shares are owned by institutional investors. 6.1% of The Joint Corp. shares are owned by insiders. Comparatively, 0.9% of Laboratory Corporation of America Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Laboratory Corporation of America Holdings beats The Joint Corp. on 9 of the 13 factors compared between the two stocks.
The Joint Corp. 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.
Laboratory Corporation of America Holdings Company Profile
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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