Head to Head Analysis: Quorum Health (QHC) versus Tenet Healthcare (THC)

Quorum Health (NYSE: QHC) and Tenet Healthcare (NYSE:THC) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

This table compares Quorum Health and Tenet Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quorum Health -9.14% -46.79% -2.65%
Tenet Healthcare -2.90% 23.13% 0.71%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Quorum Health and Tenet Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quorum Health 0 4 0 0 2.00
Tenet Healthcare 2 7 7 0 2.31

Quorum Health presently has a consensus price target of $3.88, indicating a potential downside of 19.27%. Tenet Healthcare has a consensus price target of $25.93, indicating a potential downside of 22.59%. Given Quorum Health’s higher possible upside, analysts plainly believe Quorum Health is more favorable than Tenet Healthcare.

Earnings and Valuation

This table compares Quorum Health and Tenet Healthcare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quorum Health $2.07 billion 0.07 -$114.19 million ($1.30) -3.69
Tenet Healthcare $19.18 billion 0.18 -$704.00 million $0.81 41.36

Quorum Health has higher earnings, but lower revenue than Tenet Healthcare. Quorum Health is trading at a lower price-to-earnings ratio than Tenet Healthcare, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Quorum Health has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

85.3% of Quorum Health shares are owned by institutional investors. 4.7% of Quorum Health shares are owned by company insiders. Comparatively, 1.2% of Tenet Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Tenet Healthcare beats Quorum Health on 8 of the 13 factors compared between the two stocks.

About Quorum Health

Quorum Health Corporation provides hospital and outpatient healthcare services in the United States. Its hospital and outpatient healthcare services include general and acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetric, diagnostic, psychiatric, and rehabilitation services. Quorum Health Corporation offers its healthcare services through its hospitals and affiliated facilities, including urgent care centers, diagnostic and imaging centers, physician clinics, and surgery centers. The company, through its subsidiary, Quorum Health Resources, LLC, provides hospital management advisory and healthcare consulting services to non-affiliated hospitals. As of January 5, 2018, it owned or leased 31 hospitals with an aggregate of approximately 3,000 licensed beds. The company was incorporated in 2015 and is headquartered in Brentwood, Tennessee.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company. It operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. The company's general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. It also provides intensive and critical care, and coronary care units; physical therapy, orthopedic, oncology, and outpatient services; tertiary care services, including cardiothoracic surgery, neonatal intensive care, and neurosciences; quaternary care in heart, liver, kidney, and bone marrow transplants areas; tertiary and quaternary pediatric, and burn services; and limb-salvaging vascular procedures, acute level 1 trauma services, intravascular stroke care, minimally invasive cardiac valve replacement, imaging technology, and telemedicine access for various medical specialties. In addition, the company operates ambulatory surgery and urgent care centers, imaging centers, and surgical hospitals, as well as Aspen's hospitals and clinics; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, as well as value-based care solutions to healthcare systems, individual hospitals, physician practices, self-insured organizations, health plans, and other entities. Further, it offers accounts receivable and health information management, and revenue integrity and patient financial services; patient communications and engagement services; and clinical integration, financial risk management, and population health management services. As of December 31, 2017, the company operated 76 hospitals, 20 surgical hospitals, and approximately 470 outpatient centers, as well as 247 ambulatory surgery, 34 urgent care, and 23 imaging centers in the United States; and 9 private hospitals and clinics in the United Kingdom. The company was founded in 1967 and is headquartered in Dallas, Texas.

Receive News & Ratings for Quorum Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Quorum Health and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply