Head-To-Head Analysis: Tenet Healthcare Corporation (THC) vs. Cancer Genetics (CGIX)
Tenet Healthcare Corporation (NYSE: THC) and Cancer Genetics (NASDAQ:CGIX) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Risk and Volatility
Tenet Healthcare Corporation has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Earnings & Valuation
This table compares Tenet Healthcare Corporation and Cancer Genetics’ 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)||-8.47|
|Cancer Genetics||$27.55 million||1.90||-$11.12 million||($1.05)||-2.52|
Tenet Healthcare Corporation has higher revenue and earnings than Cancer Genetics. Tenet Healthcare Corporation is trading at a lower price-to-earnings ratio than Cancer Genetics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
16.1% of Cancer Genetics shares are held by institutional investors. 3.1% of Tenet Healthcare Corporation shares are held by insiders. Comparatively, 21.3% of Cancer Genetics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings for Tenet Healthcare Corporation and Cancer Genetics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tenet Healthcare Corporation||0||9||5||0||2.36|
Tenet Healthcare Corporation presently has a consensus price target of $20.75, suggesting a potential upside of 25.61%. Cancer Genetics has a consensus price target of $6.00, suggesting a potential upside of 126.42%. Given Cancer Genetics’ stronger consensus rating and higher probable upside, analysts plainly believe Cancer Genetics is more favorable than Tenet Healthcare Corporation.
This table compares Tenet Healthcare Corporation and Cancer Genetics’ 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%|
Tenet Healthcare Corporation beats Cancer Genetics 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 Cancer Genetics
Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.
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