Universal Health Services (NYSE: UHS) is one of 49 publicly-traded companies in the “Healthcare Facilities & Services” industry, but how does it contrast to its competitors? We will compare Universal Health Services to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, analyst recommendations, valuation and risk.

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 59.1% of their earnings in the form of a dividend.

Profitability

This table compares Universal Health Services and its competitors’ 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%
Universal Health Services Competitors 9.55% 0.10% 0.49%

Volatility & Risk

Universal Health Services has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Universal Health Services’ competitors have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of Universal Health Services shares are held by institutional investors. Comparatively, 73.5% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 13.2% of Universal Health Services shares are held by insiders. Comparatively, 12.8% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Universal Health Services and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Universal Health Services $10.11 billion $1.71 billion 15.32
Universal Health Services Competitors $5.72 billion $906.68 million 39.00

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Universal Health Services and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Health Services 0 7 7 0 2.50
Universal Health Services Competitors 257 1479 1913 38 2.47

Universal Health Services currently has a consensus target price of $134.09, indicating a potential upside of 19.08%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 9.80%. Given Universal Health Services’ stronger consensus rating and higher possible upside, analysts clearly believe Universal Health Services is more favorable than its competitors.

Summary

Universal Health Services beats its competitors on 10 of the 15 factors compared.

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.

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