DaVita (NYSE:DVA) & Oscar Health (NYSE:OSCR) Critical Analysis

DaVita (NYSE:DVA) and Oscar Health (NYSE:OSCR) are both large-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Insider and Institutional Ownership

90.1% of DaVita shares are held by institutional investors. Comparatively, 75.7% of Oscar Health shares are held by institutional investors. 1.9% of DaVita shares are held by insiders. Comparatively, 22.6% of Oscar Health shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares DaVita and Oscar Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DaVita	$13.64 billion	0.84	$746.80 million	$12.22	14.65
Oscar Health	$11.70 billion	0.88	-$443.15 million	$1.40	23.79

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DaVita and Oscar Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DaVita	0	3	4	0	2.57
Oscar Health	1	7	4	1	2.38

DaVita currently has a consensus target price of $233.43, indicating a potential upside of 30.43%. Oscar Health has a consensus target price of $33.90, indicating a potential upside of 1.79%. Given DaVita’s stronger consensus rating and higher probable upside, equities analysts plainly believe DaVita is more favorable than Oscar Health.

Volatility & Risk

DaVita has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Oscar Health has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.

Profitability

This table compares DaVita and Oscar Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DaVita	6.05%	-217.63%	5.07%
Oscar Health	3.60%	38.45%	6.76%

About DaVita

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.

About Oscar Health

Oscar Health, Inc. operates as a health insurance in the United States. The company offers health plans in individual and small group markets, as well as +Oscar, a technology driven platform that help providers and payors directly enable their shift to value-based care. It also provides reinsurance products. The company was formerly known as Mulberry Health Inc. and changed its name to Oscar Health, Inc. in January 2021. Oscar Health, Inc. was incorporated in 2012 and is headquartered in New York, New York.