Labcorp (NYSE:LH) versus Surgery Partners (NASDAQ:SGRY) Head-To-Head Comparison

Labcorp (NYSE:LH) and Surgery Partners (NASDAQ:SGRY) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Labcorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Valuation and Earnings

This table compares Labcorp and Surgery Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Labcorp	$13.95 billion	1.88	$876.50 million	$12.09	26.72
Surgery Partners	$3.31 billion	0.53	-$77.90 million	($0.70)	-19.07

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

Institutional & Insider Ownership

95.9% of Labcorp shares are owned by institutional investors. 0.8% of Labcorp shares are owned by insiders. Comparatively, 2.0% of Surgery Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Labcorp and Surgery Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Labcorp	0	3	9	0	2.75
Surgery Partners	1	3	7	0	2.55

Labcorp presently has a consensus target price of $336.36, indicating a potential upside of 4.12%. Surgery Partners has a consensus target price of $19.00, indicating a potential upside of 42.32%. Given Surgery Partners’ higher possible upside, analysts plainly believe Surgery Partners is more favorable than Labcorp.

Profitability

This table compares Labcorp and Surgery Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Labcorp	6.99%	16.74%	7.81%
Surgery Partners	-2.63%	0.88%	0.34%

Summary

Labcorp beats Surgery Partners on 11 of the 14 factors compared between the two stocks.

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.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.