Universal Health Services (NYSE: UHS) is one of 50 public companies in the “Healthcare Facilities & Services” industry, but how does it contrast to its peers? We will compare Universal Health Services to similar businesses based on the strength of its risk, profitability, earnings, valuation, dividends, institutional ownership and analyst recommendations.

Risk & Volatility

Universal Health Services has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Universal Health Services’ peers have a beta of 1.02, suggesting that their average share price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Universal Health Services and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Universal Health Services $10.11 billion $1.71 billion 15.06
Universal Health Services Competitors $5.89 billion $843.94 million 34.90

Universal Health Services has higher revenue and earnings than its peers. Universal Health Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Universal Health Services pays out 5.4% of its earnings in the form of a dividend. As a group, “Healthcare Facilities & Services” companies pay a dividend yield of 1.0% and pay out 58.7% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Health Services 7.29% 15.57% 7.27%
Universal Health Services Competitors 9.08% 0.33% 0.51%

Institutional and Insider Ownership

85.3% of Universal Health Services shares are held by institutional investors. Comparatively, 74.7% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 13.2% of Universal Health Services shares are held by company insiders. Comparatively, 12.4% of shares of all “Healthcare Facilities & Services” companies 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.

Analyst Ratings

This is a breakdown of recent ratings for Universal Health Services and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Health Services 0 7 6 0 2.46
Universal Health Services Competitors 264 1565 1962 38 2.46

Universal Health Services presently has a consensus target price of $134.30, suggesting a potential upside of 21.35%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 10.13%. Given Universal Health Services’ higher probable upside, equities research analysts plainly believe Universal Health Services is more favorable than its peers.

Summary

Universal Health Services beats its peers on 9 of the 15 factors compared.

Universal Health Services Company Profile

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.

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