Quorum Health (NYSE: QHC) and Universal Health Services (NYSE:UHS) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Earnings and Valuation
Get Quorum Health alerts:
This table compares Quorum Health and Universal Health Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quorum Health||$2.07 billion||0.07||-$114.19 million||($1.30)||-3.83|
|Universal Health Services||$10.41 billion||1.06||$752.30 million||$7.53||15.59|
Universal Health Services has higher revenue and earnings than Quorum Health. Quorum Health is trading at a lower price-to-earnings ratio than Universal Health Services, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Quorum Health and Universal Health Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Health Services||0||3||11||0||2.79|
Quorum Health presently has a consensus price target of $3.88, suggesting a potential downside of 22.19%. Universal Health Services has a consensus price target of $133.00, suggesting a potential upside of 13.28%. Given Universal Health Services’ stronger consensus rating and higher probable upside, analysts plainly believe Universal Health Services is more favorable than Quorum Health.
Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Quorum Health does not pay a dividend. Universal Health Services pays out 5.3% of its earnings in the form of a dividend.
Volatility & Risk
Quorum Health has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Universal Health Services has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Institutional & Insider Ownership
85.3% of Quorum Health shares are owned by institutional investors. Comparatively, 87.5% of Universal Health Services shares are owned by institutional investors. 4.7% of Quorum Health shares are owned by company insiders. Comparatively, 12.3% of Universal Health Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Quorum Health and Universal Health Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Health Services||7.34%||15.24%||7.15%|
Universal Health Services beats Quorum Health on 14 of the 16 factors compared between the two stocks.
About Quorum Health
Quorum Health Corporation provides hospital and outpatient healthcare services in the United States. Its hospital and outpatient healthcare services include general and acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetric, diagnostic, psychiatric, and rehabilitation services. Quorum Health Corporation offers its healthcare services through its hospitals and affiliated facilities, including urgent care centers, diagnostic and imaging centers, physician clinics, and surgery centers. The company, through its subsidiary, Quorum Health Resources, LLC, provides hospital management advisory and healthcare consulting services to non-affiliated hospitals. As of January 5, 2018, it owned or leased 31 hospitals with an aggregate of approximately 3,000 licensed beds. The company was incorporated in 2015 and is headquartered in Brentwood, Tennessee.
About Universal Health Services
Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities. The company operates through Acute Care Hospital Services, Behavioral Health Care Services, and Other segments. Its hospital offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and/or behavioral health services. As of February 28, 2018, it owned and/or operated 326 inpatient facilities, and 32 outpatient and other facilities located in 37 states, Washington, D.C., the United Kingdom, Puerto Rico, and Virgin Islands. Universal Health Services, Inc. founded in 1978 and is headquartered in King Of Prussia, Pennsylvania.