Critical Analysis: Community Health Systems (NYSE:CYH) & Privia Health Group (NASDAQ:PRVA)

Privia Health Group (NASDAQ:PRVA – Get Free Report) and Community Health Systems (NYSE:CYH – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

This table compares Privia Health Group and Community Health Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Privia Health Group 1.19% 3.52% 2.00%
Community Health Systems 2.10% -6.66% 0.62%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Privia Health Group and Community Health Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Privia Health Group 0 3 11 0 2.79
Community Health Systems 2 5 1 0 1.88

Privia Health Group currently has a consensus price target of $31.00, indicating a potential upside of 43.19%. Community Health Systems has a consensus price target of $2.96, indicating a potential downside of 1.22%. Given Privia Health Group’s stronger consensus rating and higher probable upside, analysts clearly believe Privia Health Group is more favorable than Community Health Systems.

Earnings & Valuation

This table compares Privia Health Group and Community Health Systems”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Privia Health Group $2.12 billion 1.30 $22.92 million $0.21 103.10
Community Health Systems $12.48 billion 0.03 $509.00 million $1.85 1.62

Community Health Systems has higher revenue and earnings than Privia Health Group. Community Health Systems is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.5% of Privia Health Group shares are held by institutional investors. Comparatively, 85.0% of Community Health Systems shares are held by institutional investors. 5.7% of Privia Health Group shares are held by company insiders. Comparatively, 11.1% of Community Health Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Privia Health Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Summary

Privia Health Group beats Community Health Systems on 8 of the 14 factors compared between the two stocks.

About Privia Health Group

(Get Free Report)

Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.

About Community Health Systems

(Get Free Report)

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. The company was incorporated in 1996 and is headquartered in Franklin, Tennessee.

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