Contrasting Mednax (NYSE:MD) and Its Peers

Mednax (NYSE: MD) is one of 44 public companies in the “Healthcare Facilities & Services” industry, but how does it compare to its peers? We will compare Mednax to similar businesses based on the strength of its earnings, valuation, institutional ownership, analyst recommendations, dividends, profitability and risk.

Valuation and Earnings

This table compares Mednax and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mednax $3.18 billion $324.91 million 17.92
Mednax Competitors $6.37 billion $198.65 million 355.57

Mednax’s peers have higher revenue, but lower earnings than Mednax. Mednax is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Mednax has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Mednax’s peers have a beta of 0.90, meaning that their average share price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

98.5% of Mednax shares are held by institutional investors. Comparatively, 75.8% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 2.4% of Mednax shares are held by insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mednax and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mednax 7.76% 10.80% 5.57%
Mednax Competitors 12.52% 0.44% 1.40%

Analyst Ratings

This is a breakdown of recent recommendations for Mednax and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mednax 1 8 2 0 2.09
Mednax Competitors 206 1406 1930 35 2.50

Mednax currently has a consensus price target of $54.50, suggesting a potential upside of 7.45%. As a group, “Healthcare Facilities & Services” companies have a potential upside of 0.58%. Given Mednax’s higher probable upside, analysts clearly believe Mednax is more favorable than its peers.

Summary

Mednax peers beat Mednax on 8 of the 13 factors compared.

Mednax Company Profile

MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company’s national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.

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