Critical Analysis: Ethema Health (OTCMKTS:GRST) and Pediatrix Medical Group (NYSE:MD)

Ethema Health (OTCMKTS:GRST) and Pediatrix Medical Group (NYSE:MD) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Volatility & Risk

Ethema Health has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Pediatrix Medical Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ethema Health and Pediatrix Medical Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ethema Health	$6.02 million	0.13	-$2.06 million	N/A	N/A
Pediatrix Medical Group	$1.91 billion	0.92	$165.39 million	$2.06	10.43

Pediatrix Medical Group has higher revenue and earnings than Ethema Health.

Institutional and Insider Ownership

97.7% of Pediatrix Medical Group shares are owned by institutional investors. 55.8% of Ethema Health shares are owned by company insiders. Comparatively, 1.8% of Pediatrix Medical Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ethema Health and Pediatrix Medical Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ethema Health	-9.35%	N/A	-5.77%
Pediatrix Medical Group	9.02%	19.94%	8.02%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ethema Health and Pediatrix Medical Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethema Health	0	0	0	0	0.00
Pediatrix Medical Group	0	5	1	0	2.17

Pediatrix Medical Group has a consensus price target of $22.50, suggesting a potential upside of 4.75%. Given Pediatrix Medical Group’s stronger consensus rating and higher possible upside, analysts plainly believe Pediatrix Medical Group is more favorable than Ethema Health.

Summary

Pediatrix Medical Group beats Ethema Health on 10 of the 12 factors compared between the two stocks.

About Ethema Health

Ethema Health Corporation operates behavioral healthcare space specifically in the treatment of substance use disorders. It offers rehabilitation services. The company was formerly known as GreeneStone Healthcare Corporation and changed its name to Ethema Health Corporation in April 2017. Ethema Health Corporation is based in West Palm Beach, Florida.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.