Top 20 Medical Stocks Ranked by Marvin Scores
Marvin's rules picked 20 medical stocks across care facilities, devices, diagnostics, health plans and more. Nutex Health, Globus Medical and Quest Diagnostics have the highest overall scores in this list.
Medical stocks cover many kinds of businesses: hospitals and care providers, device makers, lab and diagnostic companies, drug companies, and health insurers. This list has 20 companies from those groups that score well on Marvin's measures.
Marvin's scores compare each company only with others in its own industry. A high score for a care provider and a high score for a device maker do not mean the businesses look alike, so check the figures behind each pick.
Keep in mind that the figures describe the last fiscal year and today's comparison, not what comes next. Some companies have missing data, which the blurbs point out. This is research information, not advice to buy or sell.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size and ranked them by Marvin scores, which are relative to each company's own industry. The list draws on ten related medical industries, puts the highest Overall score first, and limits how many stocks can come from any one industry. A top rank means a company compares well with its industry peers today. It does not say anything about future results.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The 10 related industries in this group (Medical - Care Facilities, Medical - Devices, Medical - Diagnostics & Research, Medical - Distribution, Medical - Equipment & Services, Medical - Healthcare Information Services, Medical - Healthcare Plans, Medical - Instruments & Supplies, Medical - Pharmaceuticals, Medical - Specialties), highest Overall score first; at most 4 per industry.
The stocks, one by one
Nutex Health, Inc. NUTX
Nutex Health has an overall score of 97, with revenue growth of 82.4% and an operating margin of 40.6%. That points to rapid expansion and strong profitability for a care provider. Caution: debt-to-equity of 0.88 is meaningful, and this reflects only one fiscal year.
Globus Medical, Inc. GMED
Globus Medical pairs a gross margin of 68.5% with a free cash flow margin of 24.0%, signs of a profitable device maker. Revenue growth of 16.7% is solid. Caution: return on equity of 11.2% is modest, and no debt figure was available.
Quest Diagnostics Incorporated DGX
Quest Diagnostics grew revenue by 11.8% and earned an operating margin of 14.1%, steady figures for a lab services business. Caution: its gross margin of 33.1% is lower than many others on this list, and debt-to-equity is 0.85.
Hinge Health, Inc. HNGE
Hinge Health combines revenue growth of 50.6% with a free cash flow margin of 40.3% and very little debt, shown by debt-to-equity of 0.02. Caution: its operating margin of 13.0% is much thinner than its cash flow margin, so the two measures tell different stories.
TransMedics Group, Inc. TMDX
TransMedics grew revenue by 37.1% and earned a return on equity of 29.3%, showing fast growth and efficient use of shareholder money. Caution: its operating margin of 12.2% is modest, and no debt figure was available.
DexCom, Inc. DXCM
DexCom has a quality score of 95, backed by an operating margin of 22.9% and a return on equity of 38.1%. Revenue growth of 15.6% is healthy. Caution: its opportunity score is only 72, and no debt data was available.
Oscar Health, Inc. OSCR
Oscar Health grew revenue by 27.5% and carries little debt, with debt-to-equity of 0.21. Caution: its operating margin is just 3.9%, and its quality score of 74 sits well below its overall score of 94.
Addus HomeCare Corporation ADUS
Addus HomeCare grew revenue by 23.2% and has very little debt, with debt-to-equity of 0.09. Its quality score is 96. Caution: operating margin of 10.0% and return on equity of 9.2% are both modest.
Boston Scientific Corporation BSX
Boston Scientific shows revenue growth of 19.9%, a gross margin of 69.9% and an operating margin of 19.8%, a healthy mix for a device maker. Caution: its opportunity score of 69 is much lower than its quality score of 93.
Royalty Pharma plc RPRX
Royalty Pharma has a very high operating margin of 59.6%, but revenue growth of just 5.1%. Debt-to-equity is 0.92. Caution: return on equity of 8.3% is modest, and free cash flow and gross margin figures are missing.
Medpace Holdings, Inc. MEDP
Medpace grew revenue by 20.0% and converts sales to cash well, with a free cash flow margin of 25.4%. Return on equity of 113.3% is very high. Caution: its opportunity score is 66, and debt and gross margin figures are missing.
ResMed Inc. RMD
ResMed has an operating margin of 33.4%, a free cash flow margin of 29.2% and low debt, with debt-to-equity of 0.13. Caution: revenue growth of 9.9% is modest next to many companies on this list.
STERIS plc STE
STERIS has a quality score of 94, an operating margin of 18.9% and low debt, with debt-to-equity of 0.27. Caution: revenue growth of 8.7% is modest, and its opportunity score of 56 is well below its quality score.
PACS Group, Inc. PACS
PACS Group grew revenue by 29.3% and earned a return on equity of 24.2%. Caution: debt-to-equity of 3.07 is the highest on this list, and its operating margin of 7.4% is thin. Free cash flow data is missing.
Veracyte, Inc. VCYT
Veracyte has a gross margin of 71.7% and a free cash flow margin of 29.5%, while revenue grew 16.0%. Those are solid signs for a diagnostics company. Caution: return on equity of 8.2% is modest, and no debt figure was available.
Cigna Corporation CI
Cigna grew revenue by 11.2% and earned a return on equity of 15.1%. Caution: its operating margin of 3.1% is thin, which is common for health plans, its gross margin is 20.6%, and free cash flow data is missing.
HealthEquity, Inc. HQY
HealthEquity has a free cash flow margin of 35.8% and an operating margin of 25.8%, suggesting strong cash generation. Caution: revenue growth of 9.5% is modest, and its opportunity score of 64 is well below its quality score of 95.
The Pennant Group, Inc. PNTG
The Pennant Group grew revenue by 36.3%, which is fast. Caution: margins are thin, with an operating margin of 5.6% and a free cash flow margin of 3.1%, and debt-to-equity of 1.21 is on the higher side.
LeMaitre Vascular, Inc. LMAT
LeMaitre Vascular has a gross margin of 72.9% and an operating margin of 29.5%, signs of a very profitable business, with revenue growth of 13.5%. Caution: its opportunity score is only 56, and no debt figure was available.
Natera, Inc. NTRA
Natera grew revenue by 35.9%, but it is not yet profitable by these measures: operating margin is -10.7% and return on equity is -10.6%. Its quality score of 56 is the lowest here. Gross margin and debt figures were unavailable.
Common questions
Does a high Marvin score mean a stock is a good buy?
No. The scores only describe how a company compares with others in its industry today. They are not a prediction and not advice to buy, sell or hold.
Why do some stocks on this list have missing figures?
Not every company reports every measure in a form that can be compared. Insurers and royalty businesses, for example, often do not have a standard gross margin. Where a figure is missing, the blurb says so and relies on the figures that are available.
Why are the scores compared only within an industry?
Different kinds of medical businesses have very different typical margins and debt levels. A health insurer normally has a thinner operating margin than a device maker, so comparing each company with its own industry gives a fairer picture.
Keep reading
- Top 15 Healthcare Stocks Right Now, Ranked by Marvin Scores
- Top 15 Healthcare Companies With the Strongest Businesses
- Top 20 Defensive Stocks Ranked by Marvin Business Quality
- Top 15 Healthcare Stocks by Marvin Opportunity Score
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.