Head to Head Survey: Mednax (MD) versus Select Medical Holdings Corporation (SEM)
Mednax (NYSE: MD) and Select Medical Holdings Corporation (NYSE:SEM) are both mid-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
This table compares Mednax and Select Medical Holdings Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Medical Holdings Corporation||1.95%||9.61%||1.84%|
This is a summary of current ratings and recommmendations for Mednax and Select Medical Holdings Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Medical Holdings Corporation||1||2||3||0||2.33|
Mednax presently has a consensus target price of $57.43, indicating a potential upside of 33.87%. Select Medical Holdings Corporation has a consensus target price of $18.80, indicating a potential upside of 3.30%. Given Mednax’s higher probable upside, equities analysts clearly believe Mednax is more favorable than Select Medical Holdings Corporation.
Insider & Institutional Ownership
79.0% of Select Medical Holdings Corporation shares are held by institutional investors. 2.4% of Mednax shares are held by insiders. Comparatively, 19.9% of Select Medical Holdings Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Mednax has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Select Medical Holdings Corporation has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Earnings and Valuation
This table compares Mednax and Select Medical Holdings Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mednax||$3.34 billion||1.20||$628.40 million||$3.16||13.58|
|Select Medical Holdings Corporation||$4.26 billion||0.57||$474.80 million||$0.64||28.44|
Mednax has higher revenue, but lower earnings than Select Medical Holdings Corporation. Mednax is trading at a lower price-to-earnings ratio than Select Medical Holdings Corporation, indicating that it is currently the more affordable of the two stocks.
MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company’s national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.
About Select Medical Holdings Corporation
Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. The Company’s segments include specialty hospitals, outpatient rehabilitation, Concentra and Other. The specialty hospitals segment consists of hospitals designed to serve the needs of long term acute patients and hospitals designed to serve patients that require intensive medical rehabilitation care. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. The Concentra segment consists of medical centers and contract services provided at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, physical therapy, veteran’s healthcare, and consumer health services. As of December 31, 2016, the Company had operations in 46 states and the District of Columbia.
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