Comparing Surgery Partners (NASDAQ:SGRY) & Joint (NASDAQ:JYNT)

Surgery Partners (NASDAQ:SGRY) and Joint (NASDAQ:JYNT) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Surgery Partners and Joint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surgery Partners	-2.63%	0.88%	0.34%
Joint	6.49%	12.02%	3.47%

Insider & Institutional Ownership

76.9% of Joint shares are owned by institutional investors. 2.0% of Surgery Partners shares are owned by insiders. Comparatively, 30.2% of Joint shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Surgery Partners and Joint”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.31 billion	0.61	-$77.90 million	($0.70)	-22.00
Joint	$54.90 million	1.85	$2.91 million	$0.27	26.56

Joint has lower revenue, but higher earnings than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than Joint, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Surgery Partners and Joint, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	1	3	7	0	2.55
Joint	1	2	0	0	1.67

Surgery Partners presently has a consensus target price of $19.00, suggesting a potential upside of 23.38%. Given Surgery Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Surgery Partners is more favorable than Joint.

Risk & Volatility

Surgery Partners has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Joint has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Summary

Joint beats Surgery Partners on 8 of the 14 factors compared between the two stocks.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

About Joint

The Joint Corp. operates and franchises chiropractic clinics in the United States. The company operates in two segments, Corporate Clinics and Franchise Operations. The Joint Corp. was incorporated in 2010 and is headquartered in Scottsdale, Arizona.