Critical Contrast: Qiagen (QGEN) and Covance (CVD)

Qiagen (NASDAQ: QGEN) and Covance (NYSE:CVD) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of recent recommendations for Qiagen and Covance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qiagen 0 7 6 0 2.46
Covance 0 0 0 0 N/A

Qiagen presently has a consensus target price of $34.88, indicating a potential upside of 2.75%. Given Qiagen’s higher probable upside, analysts clearly believe Qiagen is more favorable than Covance.

Insider & Institutional Ownership

62.2% of Qiagen shares are owned by institutional investors. 9.0% of Qiagen shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Qiagen and Covance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qiagen 2.85% 11.74% 6.28%
Covance 7.70% 12.64% 8.17%

Earnings & Valuation

This table compares Qiagen and Covance’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qiagen $1.42 billion 5.46 $40.39 million $0.17 199.65
Covance N/A N/A N/A $3.24 33.05

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

Summary

Qiagen beats Covance on 6 of the 10 factors compared between the two stocks.

Qiagen Company Profile

QIAGEN N.V. (QIAGEN) is a holding company. The Company is engaged in providing Sample to Insight solutions that transform biological samples into molecular insights. Its Sample to Insight solutions integrate sample and assay technologies, bioinformatics and automation systems. Its sample technologies are used for isolating and preparing deoxyribonucleic acid (DNA), ribonucleic acid (RNA) and proteins from blood or other liquids, tissue, plants or other materials. Its assay technologies make these biomolecules visible for analysis, such as identifying the genetic information of a pathogen or a gene mutation in a tumor. Its bioinformatics solutions interpret data to provide actionable insights. The Company’s automation platforms based on polymerase chain reaction (PCR), next-generation sequencing (NGS) and other technologies tie these together in molecular testing workflows from Sample to Insight.

Covance Company Profile

Covance Inc. is engaged in drug development services. The Company provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The Company operates in two segments: early development services, and late-stage development services. The early development services include lead optimization services, preclinical services and clinical pharmacology services. The late-stage development services include central laboratory, Phase II-IV clinical development, and market access services.

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