Universal Health Services (NYSE: UHS) and Streamline Health Solutions (NASDAQ:STRM) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Earnings & Valuation

This table compares Universal Health Services and Streamline Health Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Health Services $10.11 billion 1.02 $1.71 billion $7.35 14.69
Streamline Health Solutions $26.32 million 0.91 -$3.17 million ($0.31) -3.90

Universal Health Services has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Universal Health Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Universal Health Services and Streamline Health Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Health Services 0 7 5 0 2.42
Streamline Health Solutions 0 0 0 0 N/A

Universal Health Services presently has a consensus price target of $135.78, suggesting a potential upside of 25.73%. Given Universal Health Services’ higher possible upside, analysts plainly believe Universal Health Services is more favorable than Streamline Health Solutions.

Profitability

This table compares Universal Health Services and Streamline Health Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Health Services 7.10% 15.49% 7.08%
Streamline Health Solutions -21.76% -47.51% -13.94%

Insider and Institutional Ownership

85.4% of Universal Health Services shares are held by institutional investors. Comparatively, 51.9% of Streamline Health Solutions shares are held by institutional investors. 12.8% of Universal Health Services shares are held by company insiders. Comparatively, 26.1% of Streamline Health Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Streamline Health Solutions does not pay a dividend. Universal Health Services pays out 5.4% of its earnings in the form of a dividend.

Volatility & Risk

Universal Health Services has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Summary

Universal Health Services beats Streamline Health Solutions on 12 of the 14 factors compared between the two stocks.

About Universal Health Services

Universal Health Services, Inc. is a holding company. The Company’s principal business is owning and operating, through its subsidiaries, acute care hospitals and outpatient facilities, and behavioral healthcare facilities. The Company’s segments include Acute Care Hospital Services, Behavioral Health Services and Other. As of February 28, 2017, the Company owned and/or operated 319 inpatient facilities, and 33 outpatient and other facilities, located in 37 states, Washington, District of Columbia, the United Kingdom, Puerto Rico and the United States Virgin Islands. The Company’s hospitals provide a range of services, such as oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. As of February 28, 2017, its acute care facilities located in the United States included 26 inpatient acute care hospitals; four free-standing emergency departments, and four outpatient surgery/cancer care centers and one surgical hospital.

About Streamline Health Solutions

Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.

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