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

Dividends

HealthSouth Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. HealthSouth Corporation pays out 36.8% 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. HealthSouth Corporation has increased its dividend for 3 consecutive years. HealthSouth Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

93.0% of HealthSouth Corporation shares are held by institutional investors. Comparatively, 73.5% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 1.6% of HealthSouth Corporation shares are held by company insiders. Comparatively, 12.8% of shares of all “Healthcare Facilities & Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

HealthSouth Corporation has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, HealthSouth Corporation’s rivals have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.

Profitability

This table compares HealthSouth Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HealthSouth Corporation 6.70% 25.07% 5.51%
HealthSouth Corporation Competitors 6.86% 0.02% 0.39%

Valuation and Earnings

This table compares HealthSouth Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HealthSouth Corporation $3.77 billion $817.10 million 16.78
HealthSouth Corporation Competitors $5.72 billion $906.68 million 38.73

HealthSouth Corporation’s rivals have higher revenue and earnings than HealthSouth Corporation. HealthSouth Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for HealthSouth Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthSouth Corporation 1 3 3 0 2.29
HealthSouth Corporation Competitors 257 1480 1913 38 2.47

HealthSouth Corporation currently has a consensus target price of $49.83, indicating a potential upside of 9.16%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 8.08%. Given HealthSouth Corporation’s higher probable upside, analysts clearly believe HealthSouth Corporation is more favorable than its rivals.

Summary

HealthSouth Corporation rivals beat HealthSouth Corporation on 9 of the 15 factors compared.

HealthSouth Corporation Company Profile

HealthSouth Corporation (HealthSouth) is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in 35 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The Company manages its operations through segments, including inpatient rehabilitation, and home health and hospice. It is an owner and operator of inpatient rehabilitation hospitals. It provides specialized rehabilitative treatment on both an inpatient and outpatient basis. It offers its home health and hospice services through Encompass Home Health and Hospice business (Encompass). Encompass operates home health and hospice agencies in 25 states, with concentrations in the Southeast, Oklahoma, and Texas. As of December 31, 2016, the Company operated 123 inpatient rehabilitation hospitals. As of December 31, 2016, the Company managed five inpatient rehabilitation units through management contracts.

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