Envision Healthcare Corp (NASDAQ: AMSG) and AAC Holdings (NYSE:AAC) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Valuation and Earnings

This table compares Envision Healthcare Corp and AAC Holdings’ 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
AAC Holdings $266.82 million 0.99 $30.06 million ($0.20) -55.00

AAC Holdings has higher revenue and earnings than Envision Healthcare Corp. AAC Holdings 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.

Institutional & Insider Ownership

98.7% of Envision Healthcare Corp shares are owned by institutional investors. Comparatively, 64.0% of AAC Holdings shares are owned by institutional investors. 2.3% of Envision Healthcare Corp shares are owned by insiders. Comparatively, 37.3% of AAC Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Envision Healthcare Corp 5.34% 3.18% 2.43%
AAC Holdings -1.55% 10.70% 4.23%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Envision Healthcare Corp and AAC Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envision Healthcare Corp 0 1 5 0 2.83
AAC Holdings 0 2 1 0 2.33

Envision Healthcare Corp currently has a consensus price target of $85.60, indicating a potential upside of 26.35%. AAC Holdings has a consensus price target of $10.00, indicating a potential downside of 9.09%. Given Envision Healthcare Corp’s stronger consensus rating and higher probable upside, research analysts clearly believe Envision Healthcare Corp is more favorable than AAC Holdings.

Volatility & Risk

Envision Healthcare Corp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, AAC Holdings has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Summary

Envision Healthcare Corp beats AAC Holdings 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.

AAC Holdings Company Profile

AAC Holdings, Inc. is a provider of inpatient and outpatient substance abuse treatment services for individuals with drug and alcohol addiction. The Company performs drug testing and diagnostics laboratory services and provides physician services to its clients. As of June 30, 2016, the Company operated 12 residential substance abuse treatment facilities located throughout the United States, focused on delivering clinical care and treatment solutions across 1,139 beds, which includes 636 licensed detoxification beds, and 18 standalone outpatient centers. In addition, the Company focuses on expanding The Oxford Centre facility. As of June 30, 2016, the Company’s capacity at its Forterus treatment facility was 14 beds. The Company is engaged in deploying research-based treatment programs with structured curricula for detoxification, residential treatment, partial hospitalization and intensive outpatient care. The Company is also an Internet marketer in the addiction treatment industry.

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