Quest vs Xerox

Quest Diagnostics (DGX) and Xerox Corporation (XRX) are two prominent companies in the healthcare and technology industries respectively. While Quest is known for its clinical laboratory services, Xerox is a leader in document management solutions. Both companies have faced challenges in recent years, with Quest grappling with increased competition in the healthcare sector and Xerox adapting to the digital age. Investors have been closely monitoring the performance of these stocks, seeking opportunities for growth and stability in their portfolios.

Quest or Xerox?

When comparing Quest and Xerox, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Quest and Xerox.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Quest has a dividend yield of 4.1%, while Xerox has a dividend yield of 9.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Quest reports a 5-year dividend growth of 58.49% year and a payout ratio of 0.00%. On the other hand, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -142.31%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Quest P/E ratio at 12.87 and Xerox's P/E ratio at -12.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Quest P/B ratio is 2.24 while Xerox's P/B ratio is 0.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Quest has seen a 5-year revenue growth of -0.19%, while Xerox's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Quest's ROE at 17.11% and Xerox's ROE at -3.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €5.32 for Quest and $10.13 for Xerox. Over the past year, Quest's prices ranged from €4.60 to €6.25, with a yearly change of 35.87%. Xerox's prices fluctuated between $9.51 and $19.78, with a yearly change of 107.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.