Comparing Tenet Healthcare Corporation (THC) & Surgical Care Affiliates (SCAI)
Tenet Healthcare Corporation (NYSE: THC) and Surgical Care Affiliates (NASDAQ:SCAI) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
This is a breakdown of current ratings and recommmendations for Tenet Healthcare Corporation and Surgical Care Affiliates, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tenet Healthcare Corporation||0||9||5||0||2.36|
|Surgical Care Affiliates||0||2||0||0||2.00|
Tenet Healthcare Corporation currently has a consensus target price of $21.25, suggesting a potential upside of 33.48%. Surgical Care Affiliates has a consensus target price of $50.00, suggesting a potential downside of 10.51%. Given Tenet Healthcare Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tenet Healthcare Corporation is more favorable than Surgical Care Affiliates.
This table compares Tenet Healthcare Corporation and Surgical Care Affiliates’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tenet Healthcare Corporation||-0.97%||-2.00%||-0.09%|
|Surgical Care Affiliates||21.52%||13.07%||12.83%|
Volatility & Risk
Tenet Healthcare Corporation has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Surgical Care Affiliates has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Earnings & Valuation
This table compares Tenet Healthcare Corporation and Surgical Care Affiliates’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tenet Healthcare Corporation||$19.32 billion||0.08||$2.07 billion||($1.95)||-8.16|
|Surgical Care Affiliates||N/A||N/A||N/A||$0.55||101.58|
Tenet Healthcare Corporation has higher revenue and earnings than Surgical Care Affiliates. Tenet Healthcare Corporation is trading at a lower price-to-earnings ratio than Surgical Care Affiliates, indicating that it is currently the more affordable of the two stocks.
Tenet Healthcare Corporation beats Surgical Care Affiliates on 5 of the 9 factors compared between the two stocks.
About Tenet Healthcare Corporation
Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company’s segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children’s hospitals, two specialty hospitals and one critical access hospital. The Company’s Ambulatory Care segment includes the operations of its USPI joint venture and its Aspen facilities. As of December 31, 2016, Conifer provided one or more of the business process services described above from 20 service centers to more than 800 Tenet and non-Tenet hospital and other clients in over 40 states. As of December 31, 2016, the Company operated 20 short-stay surgical hospitals, over 470 outpatient centers, and nine facilities in the United Kingdom.
About Surgical Care Affiliates
Surgical Care Affiliates, Inc. is a provider of solutions to physicians, health plans and health systems to optimize surgical care. The Company offers tools and systems in the areas of clinical benchmarking, clinical best practices, operating efficiency, care coordination and supply chain management. As of December 31, 2016, the Company operated a network of surgical facilities in the United States, which included 197 ambulatory surgery centers (ASCs) and seven surgical hospitals in partnership with approximately 3,000 physician partners. The Company’s operations consist of its ownership and management of ASCs and surgical hospitals. Its ASCs provide the facilities, equipment, supplies and clinical support staff necessary to provide non-emergency surgical services to patients not requiring hospitalization. Its surgical hospitals allow physicians to perform a range of surgical procedures, including surgeries, and allow patients to stay in the hospital for several nights to recover.
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