Comparing Surgery Partners (NASDAQ:SGRY) & P3 Health Partners (NASDAQ:PIII)

Surgery Partners (NASDAQ:SGRY) and P3 Health Partners (NASDAQ:PIII) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Insider & Institutional Ownership

7.7% of P3 Health Partners shares are owned by institutional investors. 2.0% of Surgery Partners shares are owned by company insiders. Comparatively, 10.9% of P3 Health Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Surgery Partners and P3 Health Partners’ 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%
P3 Health Partners	-6.55%	N/A	-16.40%

Earnings & Valuation

This table compares Surgery Partners and P3 Health Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.37 billion	0.58	-$77.90 million	($0.70)	-21.21
P3 Health Partners	$1.46 billion	0.02	-$147.95 million	($33.00)	-0.13

Surgery Partners has higher revenue and earnings than P3 Health Partners. Surgery Partners is trading at a lower price-to-earnings ratio than P3 Health Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Surgery Partners and P3 Health Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	1	3	7	0	2.55
P3 Health Partners	1	2	1	0	2.00

Surgery Partners currently has a consensus price target of $19.00, indicating a potential upside of 27.98%. P3 Health Partners has a consensus price target of $17.00, indicating a potential upside of 301.89%. Given P3 Health Partners’ higher possible upside, analysts plainly believe P3 Health Partners is more favorable than Surgery Partners.

Volatility and Risk

Surgery Partners has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Summary

Surgery Partners beats P3 Health Partners on 10 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 P3 Health Partners

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.