Head to Head Review: Tenet Healthcare (THC) and The Competition

Tenet Healthcare (NYSE:THC) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it contrast to its competitors? We will compare Tenet Healthcare to related businesses based on the strength of its valuation, dividends, analyst recommendations, institutional ownership, profitability, earnings and risk.

Insider & Institutional Ownership

95.4% of Tenet Healthcare shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 1.0% of Tenet Healthcare shares are owned by insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned 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 Tenet Healthcare and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tenet Healthcare	$23.63 billion	$1.41 billion	7.80
Tenet Healthcare Competitors	$19.09 billion	$288.48 million	7.13

Tenet Healthcare has higher revenue and earnings than its competitors. Tenet Healthcare is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Tenet Healthcare and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Healthcare	0	3	18	0	2.86
Tenet Healthcare Competitors	1848	7705	13257	815	2.55

Tenet Healthcare presently has a consensus target price of $285.89, indicating a potential upside of 6.33%. As a group, “Healthcare Providers & Services” companies have a potential upside of 16.07%. Given Tenet Healthcare’s competitors higher possible upside, analysts plainly believe Tenet Healthcare has less favorable growth aspects than its competitors.

Risk & Volatility

Tenet Healthcare has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Tenet Healthcare’s competitors have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Tenet Healthcare and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenet Healthcare	10.27%	26.76%	5.55%
Tenet Healthcare Competitors	-7.80%	-141.18%	-1.53%

Summary

Tenet Healthcare beats its competitors on 10 of the 13 factors compared.

Tenet Healthcare Company Profile

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.