LifePoint Health (NASDAQ: LPNT) and DaVita HealthCare Partners (NYSE:DVA) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Earnings & Valuation
This table compares LifePoint Health and DaVita HealthCare Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LifePoint Health||$6.42 billion||0.34||$760.40 million||$4.48||12.21|
|DaVita HealthCare Partners||$15.01 billion||0.69||$2.45 billion||$6.50||8.37|
DaVita HealthCare Partners has higher revenue and earnings than LifePoint Health. DaVita HealthCare Partners is trading at a lower price-to-earnings ratio than LifePoint Health, indicating that it is currently the more affordable of the two stocks.
This table compares LifePoint Health and DaVita HealthCare Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DaVita HealthCare Partners||8.68%||14.02%||3.78%|
Volatility & Risk
LifePoint Health has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, DaVita HealthCare Partners has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for LifePoint Health and DaVita HealthCare Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DaVita HealthCare Partners||2||6||1||0||1.89|
LifePoint Health currently has a consensus target price of $65.73, indicating a potential upside of 20.16%. DaVita HealthCare Partners has a consensus target price of $66.50, indicating a potential upside of 22.24%. Given DaVita HealthCare Partners’ higher possible upside, analysts clearly believe DaVita HealthCare Partners is more favorable than LifePoint Health.
Insider and Institutional Ownership
99.5% of LifePoint Health shares are owned by institutional investors. Comparatively, 83.3% of DaVita HealthCare Partners shares are owned by institutional investors. 8.8% of LifePoint Health shares are owned by insiders. Comparatively, 2.1% of DaVita HealthCare Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
DaVita HealthCare Partners beats LifePoint Health on 10 of the 14 factors compared between the two stocks.
About LifePoint Health
LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. As of December 31, 2016, the Company operated 72 hospital campuses in 22 states, having a total of 9,424 licensed beds. It offers a range of general and specialized healthcare services to patients through a network of hospitals and outpatient facilities. Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services, and in some of its hospitals, the Company offers specialized services, such as open-heart surgery, skilled nursing, psychiatric care and neuro-surgery. It provides outpatient services, such as same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine and lithotripsy.
About DaVita HealthCare Partners
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
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