Reviewing Tenet Healthcare Corporation (THC) & Its Peers

Tenet Healthcare Corporation (NYSE: THC) is one of 53 public companies in the “Healthcare Facilities & Services” industry, but how does it compare to its rivals? We will compare Tenet Healthcare Corporation to related businesses based on the strength of its institutional ownership, risk, earnings, analyst recommendations, valuation, profitability and dividends.

Volatility and Risk

Tenet Healthcare Corporation has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Tenet Healthcare Corporation’s rivals have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

71.0% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 3.1% of Tenet Healthcare Corporation shares are held by insiders. Comparatively, 15.4% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Tenet Healthcare Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenet Healthcare Corporation -2.85% -5.61% -0.23%
Tenet Healthcare Corporation Competitors 7.61% 0.92% 1.02%

Analyst Ratings

This is a breakdown of current ratings and target prices for Tenet Healthcare Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenet Healthcare Corporation 0 7 5 0 2.42
Tenet Healthcare Corporation Competitors 205 1381 1915 35 2.50

Tenet Healthcare Corporation presently has a consensus price target of $18.58, suggesting a potential upside of 34.47%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 4.04%. Given Tenet Healthcare Corporation’s higher possible upside, research analysts clearly believe Tenet Healthcare Corporation is more favorable than its rivals.

Earnings and Valuation

This table compares Tenet Healthcare Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Tenet Healthcare Corporation $19.62 billion -$192.00 million -2.51
Tenet Healthcare Corporation Competitors $6.37 billion $198.65 million 363.53

Tenet Healthcare Corporation has higher revenue, but lower earnings than its rivals. Tenet Healthcare Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Tenet Healthcare Corporation rivals beat Tenet Healthcare Corporation on 9 of the 12 factors compared.

About Tenet Healthcare Corporation

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.

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