Reviewing BioNexus Gene Lab (NASDAQ:BGLC) & Quest Diagnostics (NYSE:DGX)
by Kim Johansen · The Markets DailyBioNexus Gene Lab (NASDAQ:BGLC – Get Free Report) and Quest Diagnostics (NYSE:DGX – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Earnings & Valuation
This table compares BioNexus Gene Lab and Quest Diagnostics’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BioNexus Gene Lab | $10.93 million | 1.08 | -$360,000.00 | ($0.02) | -33.15 |
| Quest Diagnostics | $9.25 billion | 1.54 | $854.00 million | $7.49 | 17.16 |
Quest Diagnostics has higher revenue and earnings than BioNexus Gene Lab. BioNexus Gene Lab 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 & Insider Ownership
18.9% of BioNexus Gene Lab shares are owned by institutional investors. Comparatively, 88.1% of Quest Diagnostics shares are owned by institutional investors. 6.8% of BioNexus Gene Lab shares are owned by insiders. Comparatively, 1.7% of Quest Diagnostics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares BioNexus Gene Lab and Quest Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BioNexus Gene Lab | -29.92% | -42.85% | -34.09% |
| Quest Diagnostics | 9.23% | 15.79% | 7.40% |
Analyst Ratings
This is a summary of recent ratings for BioNexus Gene Lab and Quest Diagnostics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BioNexus Gene Lab | 0 | 0 | 0 | 0 | N/A |
| Quest Diagnostics | 0 | 9 | 2 | 0 | 2.18 |
Quest Diagnostics has a consensus price target of $144.18, indicating a potential upside of 12.18%. Given Quest Diagnostics’ higher possible upside, analysts plainly believe Quest Diagnostics is more favorable than BioNexus Gene Lab.
Summary
Quest Diagnostics beats BioNexus Gene Lab on 11 of the 12 factors compared between the two stocks.
About BioNexus Gene Lab
BioNexus Gene Lab Corp., through its subsidiary, Chemrex Corporation Sdn. Bhd., engages in the wholesale of chemical raw material products in Malaysia, Indonesia, Vietnam, and other countries in Southeast Asia. Its chemical raw material products used to produce handrails, bench tops, automotive and aero parts, cleanroom panels, and instruments. The company, through its subsidiary, BioNexus Gene Lab Sdn. Bhd, is also involved in developing and providing non-invasive liquid biopsy tests for the early detection of biomarkers. The company was incorporated in 2017 and is based in Kuala Lumpur, Malaysia.
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.