Tenet Healthcare (NYSE: THC) and Air Methods (NASDAQ:AIRM) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Profitability

This table compares Tenet Healthcare and Air Methods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenet Healthcare -2.85% -5.61% -0.23%
Air Methods 6.67% 14.18% 4.43%

Earnings and Valuation

This table compares Tenet Healthcare and Air Methods’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tenet Healthcare $19.62 billion 0.07 -$192.00 million ($5.51) -2.56
Air Methods N/A N/A N/A $2.59 16.58

Air Methods has lower revenue, but higher earnings than Tenet Healthcare. Tenet Healthcare is trading at a lower price-to-earnings ratio than Air Methods, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tenet Healthcare and Air Methods, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenet Healthcare 0 8 5 0 2.38
Air Methods 0 3 1 0 2.25

Tenet Healthcare presently has a consensus target price of $18.42, indicating a potential upside of 30.61%. Air Methods has a consensus target price of $43.00, indicating a potential upside of 0.12%. Given Tenet Healthcare’s stronger consensus rating and higher possible upside, analysts clearly believe Tenet Healthcare is more favorable than Air Methods.

About Tenet Healthcare

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 Air Methods

Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.

Receive News & Ratings for Tenet Healthcare Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tenet Healthcare Corporation and related companies with MarketBeat.com's FREE daily email newsletter.