Contrasting Berto Acquisition (NASDAQ:TACO) & Quest Diagnostics (NYSE:DGX)

Quest Diagnostics (NYSE:DGX) and Berto Acquisition (NASDAQ:TACO) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Insider & Institutional Ownership

88.1% of Quest Diagnostics shares are owned by institutional investors. 0.9% of Quest Diagnostics shares are owned by company 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Quest Diagnostics and Berto Acquisition, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Diagnostics	0	7	5	1	2.54
Berto Acquisition	1	0	0	0	1.00

Quest Diagnostics currently has a consensus target price of $235.31, indicating a potential downside of 0.50%. Given Quest Diagnostics’ stronger consensus rating and higher probable upside, research analysts plainly believe Quest Diagnostics is more favorable than Berto Acquisition.

Earnings & Valuation

This table compares Quest Diagnostics and Berto Acquisition”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Diagnostics	$11.56 billion	2.26	$992.00 million	$9.42	25.10
Berto Acquisition	N/A	N/A	N/A	N/A	N/A

Quest Diagnostics has higher revenue and earnings than Berto Acquisition.

Risk & Volatility

Quest Diagnostics has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Berto Acquisition has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Profitability

This table compares Quest Diagnostics and Berto Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quest Diagnostics	9.18%	16.01%	7.27%
Berto Acquisition	N/A	N/A	N/A

Summary

Quest Diagnostics beats Berto Acquisition on 11 of the 11 factors compared between the two stocks.

About Quest Diagnostics

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

About Berto Acquisition

Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States. The company's restaurants offer Mexican inspired and American classic dishes. As of August 31, 2021, it operated approximately 600 restaurants across 16 states. The company was founded in 1964 and is headquartered in Lake Forest, California.