DGX vs LH: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
DGX and LH are similarly sized, but LH trades noticeably cheaper on forward earnings (15.65x vs 19.32x): the market is paying up for DGX's profile and pricing LH more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
DGX vs LH: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | DGX | LH | What it tells you |
|---|---|---|---|
| Market cap | $25.72B | $25.01B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 19.32 | 15.65 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 24.76 | 25.57 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.57 | 0.86 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 90% of range | 90% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
Reading it: LH is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how DGX and LH affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DGX and LH share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DGX and LH exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Quest Diagnostics (DGX) do?
Quest Diagnostics operates one of the largest clinical laboratory networks in the United States, processing billions of test results a year across a footprint of patient service centers, hospital and physician outreach relationships, and consumer-initiated testing. Its core Diagnostic Information Services segment spans routine testing (blood counts, cholesterol, metabolic panels) plus a growing base of advanced molecular and genomic diagnostics in oncology, neurology, women's health, and infectious disease. Scale, a national logistics network, and long-standing payer contracts are the company's main moats in a fragmented roughly $100 billion US lab market where Quest and Labcorp together hold the top tier.
What does Labcorp Holdings (LH) do?
Labcorp Holdings is a leading US healthcare diagnostics company that runs clinical laboratory tests for physicians, hospitals, health systems, and patients, and also provides laboratory services to pharmaceutical and biotech firms running clinical trials. Its two reporting segments are Labcorp Diagnostics, the routine and specialty testing business that processes millions of patient samples, and Labcorp Biopharma Laboratory Services, which supports drug development with central-lab and early-development testing. Alongside domestic rival Quest Diagnostics, Labcorp is one of the two dominant independent lab networks in the country. The company spun off its clinical-trial contract-research organization, Fortrea, in 2023 to focus on core testing.
DGX vs LH: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- DGX drivers: Organic volume growth; Acquisitions as a growth engine.
- LH drivers: Recurring diagnostics volume and scale; Hospital-lab acquisitions and outreach deals.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The largest risk is reimbursement policy: Medicare rates under PAMA face potential cuts (a delay pushed reductions toward 2027, but a roughly 15 percent cut to hundreds of tests looms without permanent reform), and private-payer pricing pressure caps growth. For LH, labcorp's biggest risk is reimbursement pressure, since a large share of revenue depends on rates set by Medicare, Medicaid, and commercial payers, and legislated fee cuts under frameworks like PAMA can compress pricing.
DGX or LH: which should you pick?
DGX vs LH: the full fundamentals
DGX. In Q1 2026 Quest reported revenue of about $2.9 billion (up 9.2 percent) and adjusted EPS of $2.50 (up 13.1 percent), and raised full-year guidance. The stock traded near $205 in mid-July 2026 at a forward P/E under 20, a moderate multiple below primary competitor Labcorp. The dividend has risen for 15 consecutive years, most recently a 7.5 percent increase.
LH. As of July 2026 Labcorp traded near $296 per share for a market cap around $24 billion, close to a 52-week high. The trailing P/E near 26x compresses to roughly 16x on 2026 adjusted EPS guidance, a valuation that sits below many healthcare peers. That reflects steady mid-single-digit revenue growth rather than rapid expansion, plus a modest dividend and buyback program.
Headline figures (approximate, July 2026): DGX shows revenue (ttm) ~$11.5B, 2026 revenue guidance ~$11.78B to $11.9B, 2026 adj. eps guidance ~$10.63 to $10.83, market cap ~$22.8B; LH shows revenue (fy2025) ~$13.95 billion, revenue guidance (fy2026) ~$14.6-14.8 billion, net income (fy2025) ~$877 million, adjusted eps guidance (fy2026) ~$17.70-18.35.
The bottom line: DGX vs LH
DGX and LH are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DGX and LH exposure against your real portfolio. It is not an investment adviser.
Wondering how DGX or LH fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Quest Diagnostics with AI
Connect the broker you already use and ask Walnut's AI how DGX fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between DGX and LH?
+
Quest Diagnostics operates one of the largest clinical laboratory networks in the United States, processing billions of test results a year across a footprint of patient service centers, hospital and physician outreach relationships, and consumer-initiated testing. Labcorp Holdings is a leading US healthcare diagnostics company that runs clinical laboratory tests for physicians, hospitals, health systems, and patients, and also provides laboratory services to pharmaceutical and biotech firms running clinical trials. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is DGX or LH the better stock?
+
Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, DGX or LH?
+
On forward P/E (as of August 2026), DGX trades at 19.32x and LH at 15.65x, so LH is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both DGX and LH?
+
Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of DGX vs LH?
+
DGX: The largest risk is reimbursement policy: Medicare rates under PAMA face potential cuts (a delay pushed reductions toward 2027, but a roughly 15 percent cut to hundreds of tests looms without permanent reform), and private-payer pricing pressure caps growth. Labor shortages in clinical lab technologists and molecular specialists can raise costs and constrain capacity. Increased FDA oversight of laboratory-developed tests could add compliance burden. Acquisition-led growth carries integration and overpayment risk, and a large debt load from deal activity adds interest expense. Finally, the business is competitive and partly commoditized, so share losses to Labcorp, hospital in-sourcing, or specialty labs would pressure both volume and margin. LH: Labcorp's biggest risk is reimbursement pressure, since a large share of revenue depends on rates set by Medicare, Medicaid, and commercial payers, and legislated fee cuts under frameworks like PAMA can compress pricing. Payer mix and volume shifts, including the rise of at-home and point-of-care testing, could erode walk-in and routine-test revenue over time. The business is capital and labor intensive, so wage inflation and integration costs from acquisitions can weigh on margins. Biopharma demand is tied to pharma R&D budgets and clinical-trial activity, which can soften in a funding downturn. Regulatory changes around laboratory-developed tests and ongoing competition from Quest Diagnostics and hospital systems add further uncertainty.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell DGX or LH; figures are approximate and dated (as of August 2026). Verify current data before investing.