Universal Health Services (NYSE: UHS) and Surgery Partners (NASDAQ:SGRY) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
87.5% of Universal Health Services shares are owned by institutional investors. 12.3% of Universal Health Services shares are owned by company insiders. Comparatively, 8.2% of Surgery Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Universal Health Services and Surgery Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Health Services||7.34%||15.24%||7.15%|
Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Surgery Partners does not pay a dividend. Universal Health Services pays out 5.3% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Universal Health Services and Surgery Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Health Services||$10.41 billion||1.07||$752.30 million||$7.53||15.76|
|Surgery Partners||$1.34 billion||0.70||-$52.98 million||($0.84)||-22.74|
Universal Health Services has higher revenue and earnings than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than Universal Health Services, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Universal Health Services has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Universal Health Services and Surgery Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Health Services||0||3||11||0||2.79|
Universal Health Services currently has a consensus price target of $133.00, suggesting a potential upside of 12.07%. Surgery Partners has a consensus price target of $17.67, suggesting a potential downside of 7.50%. Given Universal Health Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Universal Health Services is more favorable than Surgery Partners.
Universal Health Services beats Surgery Partners on 14 of the 16 factors compared between the two stocks.
Universal Health Services Company Profile
Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities. The company operates through Acute Care Hospital Services, Behavioral Health Care Services, and Other segments. Its hospital offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and/or behavioral health services. As of February 28, 2018, it owned and/or operated 326 inpatient facilities, and 32 outpatient and other facilities located in 37 states, Washington, D.C., the United Kingdom, Puerto Rico, and Virgin Islands. Universal Health Services, Inc. founded in 1978 and is headquartered in King Of Prussia, Pennsylvania.
Surgery Partners Company Profile
Surgery Partners, Inc. is healthcare services holding company, which engages in the provision of solutions for surgical and related ancillary care in support of its patients and physicians. It operates through the following business segments: Surgical Facility Services; Ancillary Services; and Optical Services. The Surgical Facility Services segment consists of the operation of ambulatory surgery centers and surgical hospitals, and includes the anesthesia services of the company. The Ancillary Services segment operates a diagnostic laboratory and multi-specialty physician practices. The Optical Services segment involves an optical laboratory and an optical products group purchasing organization. The company was founded in 2004 and is headquartered in Nashville, TN.
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