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

Volatility and Risk

Healthways has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Envision Healthcare Corp has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

98.7% of Envision Healthcare Corp shares are held by institutional investors. 8.4% of Healthways shares are held by insiders. Comparatively, 2.3% of Envision Healthcare Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Healthways 17.30% 29.81% 10.02%
Envision Healthcare Corp 4.64% 1.89% 2.09%

Analyst Ratings

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

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

Healthways presently has a consensus target price of $37.50, indicating a potential upside of 0.54%. Envision Healthcare Corp has a consensus target price of $85.60, indicating a potential upside of 26.35%. Given Envision Healthcare Corp’s higher probable upside, analysts clearly believe Envision Healthcare Corp is more favorable than Healthways.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Healthways $529.87 million 2.77 $115.05 million $2.32 16.08
Envision Healthcare Corp N/A N/A N/A $3.26 20.78

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.

Summary

Healthways beats Envision Healthcare Corp on 5 of the 9 factors compared between the two stocks.

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.

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.

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