Head to Head Analysis: Tenet Healthcare (NYSE:THC) & Getinge (OTCMKTS:GNGBY)

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

Insider and Institutional Ownership

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge	$3.57 billion	1.90	$230.87 million	$1.05	23.72
Tenet Healthcare	$22.64 billion	0.92	$1.41 billion	$25.93	10.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getinge	7.81%	11.12%	5.88%
Tenet Healthcare	10.27%	26.76%	5.55%

Analyst Recommendations

This is a summary of current ratings and target prices for Getinge and Tenet Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	2	0	1	2.67
Tenet Healthcare	0	1	19	1	3.00

Tenet Healthcare has a consensus target price of $273.00, suggesting a potential upside of 5.26%. Given Tenet Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Tenet Healthcare is more favorable than Getinge.

Volatility and Risk

Getinge has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Summary

Tenet Healthcare beats Getinge on 11 of the 14 factors compared between the two stocks.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

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.