RadNet (NASDAQ:RDNT) & Tenet Healthcare (NYSE:THC) Head to Head Analysis

RadNet (NASDAQ:RDNT) and Tenet Healthcare (NYSE:THC) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Earnings & Valuation

This table compares RadNet and Tenet Healthcare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$2.04 billion	2.46	-$18.65 million	($0.18)	-354.87
Tenet Healthcare	$22.64 billion	0.96	$1.41 billion	$25.93	9.76

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

Analyst Ratings

This is a summary of current recommendations for RadNet and Tenet Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	2	0	6	2	2.80
Tenet Healthcare	0	3	17	0	2.85

RadNet presently has a consensus price target of $87.43, indicating a potential upside of 36.87%. Tenet Healthcare has a consensus price target of $268.50, indicating a potential upside of 6.09%. Given RadNet’s higher possible upside, research analysts plainly believe RadNet is more favorable than Tenet Healthcare.

Volatility and Risk

RadNet has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares RadNet and Tenet Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.66%	2.77%	0.97%
Tenet Healthcare	10.27%	26.76%	5.55%

Institutional and Insider Ownership

77.9% of RadNet shares are owned by institutional investors. Comparatively, 95.4% of Tenet Healthcare shares are owned by institutional investors. 5.6% of RadNet shares are owned by company insiders. Comparatively, 1.0% of Tenet Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Tenet Healthcare beats RadNet on 10 of the 15 factors compared between the two stocks.

About RadNet

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.