Envision Healthcare Corp (NASDAQ: AMSG) and Healthways (NASDAQ:TVTY) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitabiliy, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Envision Healthcare Corp and Healthways’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Envision Healthcare Corp N/A N/A N/A $3.26 20.78
Healthways $515.96 million 3.02 $109.39 million ($2.72) -14.61

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

Insider & Institutional Ownership

98.7% of Envision Healthcare Corp shares are held by institutional investors. 2.3% of Envision Healthcare Corp shares are held by company insiders. Comparatively, 8.4% of Healthways shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Envision Healthcare Corp and Healthways’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envision Healthcare Corp 4.64% 1.89% 2.09%
Healthways -18.90% 37.59% 11.18%

Risk & Volatility

Envision Healthcare Corp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Healthways has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Envision Healthcare Corp and Healthways, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envision Healthcare Corp 0 1 5 0 2.83
Healthways 0 1 7 0 2.88

Envision Healthcare Corp currently has a consensus price target of $85.60, indicating a potential upside of 26.35%. Healthways has a consensus price target of $32.19, indicating a potential downside of 19.03%. Given Envision Healthcare Corp’s higher possible upside, equities research analysts clearly believe Envision Healthcare Corp is more favorable than Healthways.

Summary

Healthways beats Envision Healthcare Corp on 6 of the 11 factors compared between the two stocks.

Envision Healthcare Corp Company Profile

Envision Healthcare Corporation is a provider of healthcare services. The Company offers a range clinical solutions, including physician-led services, medical transportation, ambulatory services and post-acute services. The Company operates through three segments: physician services, medical transportation and ambulatory services. The physician services segment includes the Company’s hospital-based and non-hospital-based physician services business. The medical transportation segment includes the Company’s community-based medical transportation services, including emergency 911, non-emergency, managed transportation, air ambulance and disaster response services. The ambulatory services segment includes the Company’s ambulatory surgery business, which acquires, develops, owns and operates ambulatory surgery centers (ASCs) and surgical hospitals in partnership with physicians and health systems.

Healthways Company Profile

Tivity Health, Inc., formerly Healthways, Inc., is focused targeted population health for those aged 50 and older. The Company offers three programs: SilverSneakers senior fitness, Prime fitness and WholeHealth Living. The SilverSneakers senior fitness program is offered to members of Medicare Advantage, Medicare Supplement, and Group Retiree plans. The Company also offers Prime fitness, a fitness facility access program, through commercial health plans, employers and insurance exchanges. Its national network of fitness centers delivers both SilverSneakers and Prime fitness. As of December 31, 2016, the Company’s fitness networks encompassed approximately 16,000 participating locations and more than 1,000 alternative locations that provide classes outside of traditional fitness centers. As of December 31, 2016, the Company’s WholeHealth Living network included over 88,000 complementary, alternative, and physical medicine practitioners to serve individuals through health plans.

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