DaVita HealthCare Partners (NYSE: DVA) and LifePoint Health (NASDAQ:LPNT) are both mid-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares DaVita HealthCare Partners and LifePoint Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DaVita HealthCare Partners 8.68% 14.02% 3.78%
LifePoint Health 2.61% 7.40% 2.66%

Analyst Recommendations

This is a breakdown of current ratings and price targets for DaVita HealthCare Partners and LifePoint Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DaVita HealthCare Partners 1 5 1 0 2.00
LifePoint Health 2 8 2 0 2.00

DaVita HealthCare Partners currently has a consensus price target of $66.50, suggesting a potential upside of 10.14%. LifePoint Health has a consensus price target of $65.67, suggesting a potential upside of 14.70%. Given LifePoint Health’s higher probable upside, analysts plainly believe LifePoint Health is more favorable than DaVita HealthCare Partners.

Earnings & Valuation

This table compares DaVita HealthCare Partners and LifePoint Health’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DaVita HealthCare Partners $15.01 billion 0.77 $2.45 billion $6.50 9.29
LifePoint Health $6.42 billion 0.36 $760.40 million $4.48 12.78

DaVita HealthCare Partners has higher revenue and earnings than LifePoint Health. DaVita HealthCare Partners is trading at a lower price-to-earnings ratio than LifePoint Health, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

DaVita HealthCare Partners has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, LifePoint Health has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Institutional & Insider Ownership

83.3% of DaVita HealthCare Partners shares are held by institutional investors. Comparatively, 99.5% of LifePoint Health shares are held by institutional investors. 2.1% of DaVita HealthCare Partners shares are held by company insiders. Comparatively, 8.8% of LifePoint Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

DaVita HealthCare Partners beats LifePoint Health on 9 of the 13 factors compared between the two stocks.

About DaVita HealthCare Partners

DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.

About LifePoint Health

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. As of December 31, 2016, the Company operated 72 hospital campuses in 22 states, having a total of 9,424 licensed beds. It offers a range of general and specialized healthcare services to patients through a network of hospitals and outpatient facilities. Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services, and in some of its hospitals, the Company offers specialized services, such as open-heart surgery, skilled nursing, psychiatric care and neuro-surgery. It provides outpatient services, such as same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine and lithotripsy.

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