Comparing The Providence Service (PRSC) & TeamHealth (TMH)

The Providence Service (NASDAQ: PRSC) and TeamHealth (NYSE:TMH) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

97.0% of The Providence Service shares are owned by institutional investors. 18.9% of The Providence Service shares are owned by company insiders. Comparatively, 1.3% of TeamHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares The Providence Service and TeamHealth’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Providence Service $1.58 billion 0.54 $91.92 million $5.58 11.55
TeamHealth N/A N/A N/A $0.26 N/A

The Providence Service has higher revenue and earnings than TeamHealth. TeamHealth is trading at a lower price-to-earnings ratio than The Providence Service, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The Providence Service and TeamHealth, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Providence Service 0 0 1 0 3.00
TeamHealth 0 0 0 0 N/A

The Providence Service presently has a consensus price target of $67.00, suggesting a potential upside of 3.97%.

Profitability

This table compares The Providence Service and TeamHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Providence Service 4.91% 6.29% 2.63%
TeamHealth 0.92% 5.98% 0.99%

Summary

The Providence Service beats TeamHealth on 8 of the 9 factors compared between the two stocks.

The Providence Service Company Profile

The Providence Service Corporation (Providence) is a holding company. The Company, through its subsidiaries, is engaged in the provision of healthcare and workforce development services for public and private sector entities. The Company’s segments include Non-Emergency Transportation Services (NET Services), Workforce Development Services (WD Services) and Matrix Investment. NET Services segment includes nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations. WD Services segment is a global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs. Matrix Investment segment includes minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments (CHAs), to members of managed care organizations, accounted for as an equity method investment.

TeamHealth Company Profile

Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.

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