LifePoint Health (LPNT) vs. Diplomat Pharmacy (DPLO) Head to Head Review

LifePoint Health (NASDAQ: LPNT) and Diplomat Pharmacy (NYSE:DPLO) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Volatility & Risk

LifePoint Health has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for LifePoint Health and Diplomat Pharmacy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LifePoint Health 1 12 5 0 2.22
Diplomat Pharmacy 0 6 3 0 2.33

LifePoint Health presently has a consensus price target of $57.64, suggesting a potential upside of 23.04%. Diplomat Pharmacy has a consensus price target of $22.72, suggesting a potential downside of 4.77%. Given LifePoint Health’s higher probable upside, research analysts clearly believe LifePoint Health is more favorable than Diplomat Pharmacy.

Profitability

This table compares LifePoint Health and Diplomat Pharmacy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LifePoint Health 2.45% 7.01% 2.53%
Diplomat Pharmacy 0.18% 8.30% 4.70%

Insider and Institutional Ownership

69.9% of Diplomat Pharmacy shares are held by institutional investors. 8.8% of LifePoint Health shares are held by company insiders. Comparatively, 30.2% of Diplomat Pharmacy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares LifePoint Health and Diplomat Pharmacy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LifePoint Health $7.27 billion 0.25 $121.90 million $4.23 11.08
Diplomat Pharmacy $4.41 billion 0.37 $28.27 million $0.10 238.60

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

Summary

Diplomat Pharmacy beats LifePoint Health on 8 of the 14 factors compared between the two stocks.

LifePoint Health Company Profile

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.

Diplomat Pharmacy Company Profile

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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