Analyzing Viemed Healthcare (NASDAQ:VMD) and Pediatrix Medical Group (NYSE:MD)

Pediatrix Medical Group (NYSE:MD) and Viemed Healthcare (NASDAQ:VMD) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pediatrix Medical Group and Viemed Healthcare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pediatrix Medical Group	0	5	2	0	2.29
Viemed Healthcare	0	1	1	0	2.50

Pediatrix Medical Group presently has a consensus price target of $24.33, suggesting a potential downside of 6.66%. Given Pediatrix Medical Group’s higher probable upside, research analysts clearly believe Pediatrix Medical Group is more favorable than Viemed Healthcare.

Earnings and Valuation

This table compares Pediatrix Medical Group and Viemed Healthcare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pediatrix Medical Group	$1.91 billion	1.12	$165.39 million	$2.06	12.65
Viemed Healthcare	$270.28 million	1.38	$14.93 million	$0.37	26.54

Pediatrix Medical Group has higher revenue and earnings than Viemed Healthcare. Pediatrix Medical Group is trading at a lower price-to-earnings ratio than Viemed Healthcare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pediatrix Medical Group and Viemed Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pediatrix Medical Group	8.96%	20.05%	8.15%
Viemed Healthcare	4.81%	10.16%	7.22%

Volatility and Risk

Pediatrix Medical Group has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Viemed Healthcare has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

97.7% of Pediatrix Medical Group shares are held by institutional investors. Comparatively, 74.2% of Viemed Healthcare shares are held by institutional investors. 1.8% of Pediatrix Medical Group shares are held by insiders. Comparatively, 20.6% of Viemed Healthcare shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Pediatrix Medical Group beats Viemed Healthcare on 9 of the 14 factors compared between the two stocks.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.

About Viemed Healthcare

Viemed Healthcare, Inc., together with its subsidiaries, provides home medical equipment (HME) and post-acute respiratory healthcare services to patients in the United States. It provides respiratory disease management solutions, including treatment of chronic obstructive pulmonary disease (COPD), which include non-invasive ventilation, percussion vests, and other therapies; and invasive and non-invasive ventilation and related equipment and supplies to patients suffering from COPD. The company leases non-invasive and invasive ventilators, positive airway pressure machines (PAP), durable medical equipment, percussion vests, oxygen concentrators, and other medical equipment; and sells and rents HME devices. In addition, it provides neuromuscular care and oxygen therapy services; and sleep apnea management provides sleep solutions and/or equipment, such as PAP, automatic continuous positive airway pressure, and bi-level positive airway pressure machines. Further, the company offers in home sleep apnea testing services, as well as healthcare staffing and recruitment services. Viemed Healthcare, Inc. was founded in 2006 and is headquartered in Lafayette, Louisiana.