Analyzing Sonic Healthcare (OTCMKTS:SKHHY) and Labcorp (NYSE:LH)

Sonic Healthcare (OTCMKTS:SKHHY) and Labcorp (NYSE:LH) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Sonic Healthcare and Labcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonic Healthcare	N/A	N/A	N/A
Labcorp	6.28%	16.16%	7.62%

Valuation & Earnings

This table compares Sonic Healthcare and Labcorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonic Healthcare	$6.25 billion	1.18	$332.61 million	N/A	N/A
Labcorp	$13.95 billion	1.60	$876.50 million	$10.46	25.89

Labcorp has higher revenue and earnings than Sonic Healthcare.

Insider and Institutional Ownership

0.0% of Sonic Healthcare shares are owned by institutional investors. Comparatively, 95.9% of Labcorp shares are owned by institutional investors. 0.8% of Labcorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Sonic Healthcare pays an annual dividend of $0.57 per share and has a dividend yield of 3.8%. Labcorp pays an annual dividend of $2.88 per share and has a dividend yield of 1.1%. Labcorp pays out 27.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sonic Healthcare and Labcorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonic Healthcare	1	0	0	0	1.00
Labcorp	0	3	8	0	2.73

Labcorp has a consensus price target of $307.20, suggesting a potential upside of 13.44%. Given Labcorp’s stronger consensus rating and higher probable upside, analysts plainly believe Labcorp is more favorable than Sonic Healthcare.

Volatility & Risk

Sonic Healthcare has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Labcorp has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

Labcorp beats Sonic Healthcare on 12 of the 14 factors compared between the two stocks.

About Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.

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.