Analyzing Tenet Healthcare Corporation (THC) and DaVita HealthCare Partners (DVA)
Tenet Healthcare Corporation (NYSE: THC) and DaVita HealthCare Partners (NYSE:DVA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Earnings and Valuation
This table compares Tenet Healthcare Corporation and DaVita HealthCare Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tenet Healthcare Corporation||$19.32 billion||0.09||$2.07 billion||($1.95)||-8.81|
|DaVita HealthCare Partners||$15.01 billion||0.76||$2.45 billion||$6.50||9.19|
DaVita HealthCare Partners has higher revenue, but lower earnings than Tenet Healthcare Corporation. Tenet Healthcare Corporation is trading at a lower price-to-earnings ratio than DaVita HealthCare Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Tenet Healthcare Corporation and DaVita HealthCare Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tenet Healthcare Corporation||0||9||5||0||2.36|
|DaVita HealthCare Partners||1||5||2||0||2.13|
Tenet Healthcare Corporation presently has a consensus price target of $21.25, suggesting a potential upside of 23.76%. DaVita HealthCare Partners has a consensus price target of $67.71, suggesting a potential upside of 13.40%. Given Tenet Healthcare Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tenet Healthcare Corporation is more favorable than DaVita HealthCare Partners.
This table compares Tenet Healthcare Corporation and DaVita HealthCare Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tenet Healthcare Corporation||-0.97%||-2.00%||-0.09%|
|DaVita HealthCare Partners||8.68%||14.02%||3.78%|
Risk and Volatility
Tenet Healthcare Corporation has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, DaVita HealthCare Partners has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
Institutional & Insider Ownership
83.4% of DaVita HealthCare Partners shares are owned by institutional investors. 3.1% of Tenet Healthcare Corporation shares are owned by company insiders. Comparatively, 2.1% of DaVita HealthCare Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
DaVita HealthCare Partners beats Tenet Healthcare Corporation on 7 of the 13 factors compared between the two stocks.
About Tenet Healthcare Corporation
Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company’s segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children’s hospitals, two specialty hospitals and one critical access hospital. The Company’s Ambulatory Care segment includes the operations of its USPI joint venture and its Aspen facilities. As of December 31, 2016, Conifer provided one or more of the business process services described above from 20 service centers to more than 800 Tenet and non-Tenet hospital and other clients in over 40 states. As of December 31, 2016, the Company operated 20 short-stay surgical hospitals, over 470 outpatient centers, and nine facilities in the United Kingdom.
About DaVita HealthCare Partners
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
Receive News & Ratings for Tenet Healthcare Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tenet Healthcare Corporation and related companies with MarketBeat.com's FREE daily email newsletter.