Financial Analysis: Ardent Health (NYSE:ARDT) and Medpace (NASDAQ:MEDP)

Medpace (NASDAQ:MEDPGet Free Report) and Ardent Health (NYSE:ARDTGet Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

78.0% of Medpace shares are owned by institutional investors. 20.3% of Medpace shares are owned by insiders. Comparatively, 1.7% of Ardent Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Medpace and Ardent Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medpace 3 8 3 0 2.00
Ardent Health 2 4 6 0 2.33

Medpace currently has a consensus price target of $477.36, indicating a potential upside of 12.60%. Ardent Health has a consensus price target of $14.58, indicating a potential upside of 55.97%. Given Ardent Health’s stronger consensus rating and higher possible upside, analysts clearly believe Ardent Health is more favorable than Medpace.

Profitability

This table compares Medpace and Ardent Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medpace 17.83% 118.82% 25.07%
Ardent Health 3.24% 19.02% 6.04%

Valuation & Earnings

This table compares Medpace and Ardent Health”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medpace $2.53 billion 4.72 $404.39 million $15.30 27.71
Ardent Health $5.97 billion 0.22 $210.34 million $1.45 6.45

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

Risk and Volatility

Medpace has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Ardent Health has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Summary

Medpace beats Ardent Health on 10 of the 14 factors compared between the two stocks.

About Medpace

(Get Free Report)

Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.

About Ardent Health

(Get Free Report)

Ardent Health Partners, Inc. owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, Inc. is a subsidiary of EGI-AM Investments, L.L.C.

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