Analyzing TeamHealth Holdings (TMH) and Select Medical Holdings Corporation (SEM)
TeamHealth Holdings (NYSE: TMH) and Select Medical Holdings Corporation (NYSE:SEM) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
Earnings & Valuation
This table compares TeamHealth Holdings 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|
|Select Medical Holdings Corporation||$4.26 billion||0.58||$474.80 million||$0.64||28.91|
Select Medical Holdings Corporation has higher revenue and earnings than TeamHealth Holdings. Select Medical Holdings Corporation is trading at a lower price-to-earnings ratio than TeamHealth Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for TeamHealth Holdings and Select Medical Holdings Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Medical Holdings Corporation||1||2||3||0||2.33|
TeamHealth Holdings presently has a consensus price target of $42.17, indicating a potential downside of 3.07%. Select Medical Holdings Corporation has a consensus price target of $18.80, indicating a potential upside of 1.62%. Given Select Medical Holdings Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Select Medical Holdings Corporation is more favorable than TeamHealth Holdings.
This table compares TeamHealth Holdings 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%|
Insider & Institutional Ownership
79.0% of Select Medical Holdings Corporation shares are owned by institutional investors. 1.3% of TeamHealth Holdings shares are owned by company insiders. Comparatively, 19.9% of Select Medical Holdings Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
TeamHealth Holdings has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Select Medical Holdings Corporation has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Select Medical Holdings Corporation beats TeamHealth Holdings on 11 of the 11 factors compared between the two stocks.
About TeamHealth Holdings
Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.
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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