Universal Health Services (NYSE:UHS) and Progyny (NASDAQ:PGNY) Financial Review

Progyny (NASDAQ:PGNY) and Universal Health Services (NYSE:UHS) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings & Valuation

This table compares Progyny and Universal Health Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progyny	$1.29 billion	1.66	$58.52 million	$0.92	30.27
Universal Health Services	$18.11 billion	0.56	$1.49 billion	$24.55	7.07

Universal Health Services has higher revenue and earnings than Progyny. Universal Health Services is trading at a lower price-to-earnings ratio than Progyny, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Progyny and Universal Health Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Progyny	6.00%	15.98%	10.65%
Universal Health Services	8.42%	19.39%	9.21%

Analyst Recommendations

This is a summary of current recommendations and price targets for Progyny and Universal Health Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progyny	0	3	9	1	2.85
Universal Health Services	0	12	5	0	2.29

Progyny presently has a consensus target price of $34.36, suggesting a potential upside of 23.39%. Universal Health Services has a consensus target price of $204.93, suggesting a potential upside of 18.12%. Given Progyny’s stronger consensus rating and higher possible upside, analysts clearly believe Progyny is more favorable than Universal Health Services.

Volatility & Risk

Progyny has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Universal Health Services has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

94.9% of Progyny shares are held by institutional investors. Comparatively, 86.1% of Universal Health Services shares are held by institutional investors. 9.9% of Progyny shares are held by insiders. Comparatively, 17.1% of Universal Health Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Progyny beats Universal Health Services on 8 of the 15 factors compared between the two stocks.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

About Universal Health Services

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric services, pharmacy services, and/or behavioral health services. It also provides commercial health insurance services; and various management services, which include central purchasing, information, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services. Universal Health Services, Inc. founded in 1978 and is headquartered in King of Prussia, Pennsylvania.