Reviewing Universal Health Services (UHS) & The Joint Corp. (JYNT)
Universal Health Services (NYSE: UHS) and The Joint Corp. (NASDAQ:JYNT) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares Universal Health Services and The Joint Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Universal Health Services||$10.11 billion||0.97||$1.71 billion||$7.28||14.11|
|The Joint Corp.||$22.97 million||2.55||-$4.53 million||($0.87)||-5.10|
Universal Health Services has higher revenue and earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than Universal Health Services, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Universal Health Services has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, The Joint Corp. has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Institutional and Insider Ownership
85.7% of Universal Health Services shares are held by institutional investors. Comparatively, 46.9% of The Joint Corp. shares are held by institutional investors. 13.2% of Universal Health Services shares are held by insiders. Comparatively, 6.1% of The Joint Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Universal Health Services and The Joint Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Health Services||6.90%||15.13%||6.92%|
|The Joint Corp.||-48.08%||-103.25%||-42.06%|
This is a breakdown of current ratings for Universal Health Services and The Joint Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Health Services||0||8||9||0||2.53|
|The Joint Corp.||0||0||4||0||3.00|
Universal Health Services currently has a consensus target price of $128.00, indicating a potential upside of 24.63%. The Joint Corp. has a consensus target price of $6.15, indicating a potential upside of 38.51%. Given The Joint Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe The Joint Corp. is more favorable than Universal Health Services.
Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. The Joint Corp. does not pay a dividend. Universal Health Services pays out 5.5% of its earnings in the form of a dividend.
Universal Health Services beats The Joint Corp. on 10 of the 15 factors compared between the two stocks.
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.
About The Joint Corp.
The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.
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