Tenet Healthcare Corporation (NYSE: THC) is one of 44 public companies in the “Healthcare Facilities & Services” industry, but how does it compare to its peers? We will compare Tenet Healthcare Corporation to related companies based on the strength of its dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Tenet Healthcare Corporation -2.85% -5.61% -0.23%
Tenet Healthcare Corporation Competitors 12.52% 0.27% 1.30%

Valuation and Earnings

This table compares Tenet Healthcare Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Tenet Healthcare Corporation $19.62 billion -$192.00 million -2.45
Tenet Healthcare Corporation Competitors $6.37 billion $198.65 million 443.22

Tenet Healthcare Corporation has higher revenue, but lower earnings than its peers. Tenet Healthcare Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

75.2% of shares of all “Healthcare Facilities & Services” companies are owned by institutional investors. 3.1% of Tenet Healthcare Corporation shares are owned by company insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tenet Healthcare Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenet Healthcare Corporation 0 8 5 0 2.38
Tenet Healthcare Corporation Competitors 206 1394 1923 35 2.50

Tenet Healthcare Corporation currently has a consensus target price of $18.42, suggesting a potential upside of 36.42%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 0.22%. Given Tenet Healthcare Corporation’s higher probable upside, equities research analysts plainly believe Tenet Healthcare Corporation is more favorable than its peers.

Volatility and Risk

Tenet Healthcare Corporation has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Tenet Healthcare Corporation’s peers have a beta of 0.89, indicating that their average stock price is 11% less volatile than the S&P 500.

Summary

Tenet Healthcare Corporation peers beat Tenet Healthcare Corporation on 9 of the 12 factors compared.

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.

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