Top 15 Healthcare Companies With the Strongest Businesses
Marvin's rules picked 15 Healthcare companies with the highest Business Quality scores compared with industry peers. They span biotech, medical devices, care providers and drugmakers, and each has its own strengths and weak spots.
A strong business here means a company that scores well on Marvin's Business Quality measure. That measure looks at things like growth, profit margins, cash generation and how much debt a company carries, always compared with others in the same industry. This list covers 15 Healthcare companies as of October 2026.
Healthcare covers very different kinds of companies. Biotech firms often spend heavily on research, so negative margins can sit next to fast sales growth. Medical device makers and service providers tend to have steadier, more predictable numbers. Comparing across industries is harder than it looks.
Keep in mind that a high score describes how a company compares with its industry peers today. It is not a forecast and not a recommendation. Read each blurb for the specific figures, and note where a number is weak or missing.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size threshold and ranked those in the Healthcare sector by Business Quality score, highest first. The rules also limited how many companies from any one industry could appear. All scores run on a scale of zero to one hundred and are relative to each company's own industry, so a high score means strong compared with industry peers, not strong in absolute terms.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Healthcare sector, highest Business Quality score first; at most 4 per industry.
The stocks, one by one
BioCryst Pharmaceuticals, Inc. BCRX
BioCryst earns a Business Quality score of 97. Revenue grew 94.1% last fiscal year and gross margin is 97.8%, so sales leave a lot after direct costs. Caution: operating margin is -33.3%, meaning operations still lose money, though free cash flow margin is 39.7%.
Krystal Biotech, Inc. KRYS
Krystal Biotech combines a 44.9% operating margin with a 58.5% free cash flow margin, which points to a very profitable business. Revenue grew 33.9% and return on equity is 17.8%. Caution: its opportunity score is only 60, which holds the overall score at 92.
Edwards Lifesciences Corporation EW
Edwards Lifesciences shows steady, profitable growth: revenue rose 11.5% and operating margin is 22.3%. Debt-to-equity of 0.07 signals very little borrowing. Caution: its opportunity score is just 22, which pulls the overall score down to 87 despite top-tier quality.
Nutex Health, Inc. NUTX
Nutex Health grew revenue 82.4% with an operating margin of 40.6% and return on equity of 45.6%, a strong mix of growth and profitability. Caution: debt-to-equity of 0.88 is higher than several others here, so borrowing deserves a closer look.
ANI Pharmaceuticals, Inc. ANIP
ANI Pharmaceuticals grew revenue 43.8% and has a debt-to-equity ratio of 0.50, a moderate debt load. Return on equity is 18.1%. Caution: operating margin of 15.4% and free cash flow margin of 17.7% are thinner than most peers on this list, and gross margin is unavailable.
Arrowhead Pharmaceuticals, Inc. ARWR
Arrowhead Pharmaceuticals has a quality score of 96 and reported revenue growth of 23258.2%, a figure that large likely reflects a very small earlier base. Caution: operating margin is -33.8%, free cash flow margin is -11.2% and return on equity is -68.7%, so the business is still losing money.
Globus Medical, Inc. GMED
Globus Medical grew revenue 16.7% with an operating margin of 20.3% and a free cash flow margin of 24.0%, which suggests solid profits that turn into cash. Return on equity is 11.2%. Caution: debt-to-equity data is not available, so its debt load can't be judged here.
PTC Therapeutics, Inc. PTCT
PTC Therapeutics grew revenue 114.5% and has a positive operating margin of 12.5%, an encouraging sign for a biotech. Caution: free cash flow margin is -3.9%, so the company is still spending slightly more cash than it brings in, and return on equity and debt figures are missing.
IDEXX Laboratories, Inc. IDXX
IDEXX Laboratories has a quality score of 96, backed by a 32.0% operating margin, 70.7% return on equity and modest debt-to-equity of 0.36. Revenue grew 10.4%. Caution: its opportunity score is only 7, which drags the overall score down to 79.
DexCom, Inc. DXCM
DexCom grew revenue 15.6% with an operating margin of 22.9% and a free cash flow margin of 28.3%, a healthy mix of growth and cash generation. Return on equity is 38.1%. Caution: debt-to-equity is not available, so leverage can't be checked here.
HealthEquity, Inc. HQY
HealthEquity turns a lot of revenue into cash, with a free cash flow margin of 35.8% and an operating margin of 25.8%. Debt-to-equity is 0.49. Caution: revenue growth of 9.5% is modest, and return on equity of 11.9% is not especially high.
Addus HomeCare Corporation ADUS
Addus HomeCare grew revenue 23.2% and carries very little debt, with debt-to-equity of 0.09. Caution: margins are thin, with an operating margin of 10.0% and gross margin of 32.4%, so there is less cushion than at higher-margin companies on this list.
Eli Lilly and Company LLY
Eli Lilly grew revenue 44.7%, with a gross margin of 83.4% and return on equity of 78.8%, all strong signs. Caution: debt-to-equity of 1.62 is the highest on this list, and operating margin and free cash flow margin are not available.
Royalty Pharma plc RPRX
Royalty Pharma has a very high operating margin of 59.6% and debt-to-equity of 0.92. Caution: revenue growth of 5.1% is slow and return on equity of 8.3% is modest. Free cash flow margin and gross margin are not available.
STERIS plc STE
STERIS is a steady, profitable business, with an operating margin of 18.9%, a free cash flow margin of 15.3% and low debt-to-equity of 0.27. Caution: revenue growth of 8.7% is modest, and its opportunity score is 56.
Common questions
What does the Business Quality score measure?
It is Marvin's score for how strong a company's underlying business looks compared with others in its industry. It draws on measures such as growth, profit margins, cash generation and debt. A higher score means stronger results than industry peers.
Why do some strong-scoring companies have negative margins?
Scores are relative to each company's industry. Biotech companies often spend heavily on research before profits arrive, so negative operating or cash flow margins are common in that group. A company can score well against peers on other measures while still losing money.
Does a high score mean a stock is a good investment?
No. The scores describe how a company compares with industry peers today. They don't predict future results or say whether a stock is worth owning. Treat the list as a starting point for your own research.
Keep reading
- Top 20 Defensive Stocks Ranked by Marvin Business Quality
- Top 15 Healthcare Stocks Right Now, Ranked by Marvin Scores
- Top 20 Medical Stocks Ranked by Marvin Scores
- 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.