Financial Contrast: Tenet Healthcare (NYSE:THC) vs. Auna (NYSE:AUNA)

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

Earnings & Valuation

This table compares Auna and Tenet Healthcare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auna	$4.67 billion	0.08	$27.39 million	$0.07	74.00
Tenet Healthcare	$21.31 billion	1.01	$1.41 billion	$25.93	10.28

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

Insider & Institutional Ownership

95.4% of Tenet Healthcare shares are held by institutional investors. 1.0% of Tenet Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Auna and Tenet Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auna	1	2	1	1	2.40
Tenet Healthcare	0	1	19	1	3.00

Auna presently has a consensus target price of $6.97, indicating a potential upside of 34.49%. Tenet Healthcare has a consensus target price of $273.00, indicating a potential upside of 2.40%. Given Auna’s higher probable upside, analysts clearly believe Auna is more favorable than Tenet Healthcare.

Risk & Volatility

Auna has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Auna	0.44%	12.88%	3.24%
Tenet Healthcare	10.27%	26.76%	5.55%

Summary

Tenet Healthcare beats Auna on 12 of the 14 factors compared between the two stocks.

About Auna

Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.