Reviewing Tenet Healthcare Corporation (THC) and Its Peers

Tenet Healthcare Corporation (NYSE: THC) is one of 51 public companies in the “Healthcare Facilities & Services” industry, but how does it compare to its rivals? We will compare Tenet Healthcare Corporation to related businesses based on the strength of its valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Valuation and Earnings

This table compares Tenet Healthcare Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tenet Healthcare Corporation $19.32 billion $2.07 billion -2.52
Tenet Healthcare Corporation Competitors $5.41 billion $832.36 million 22.77

Tenet Healthcare Corporation has higher revenue and earnings than its rivals. Tenet Healthcare Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Tenet Healthcare Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenet Healthcare Corporation -2.85% -5.11% -0.22%
Tenet Healthcare Corporation Competitors 6.81% 0.53% 0.64%

Volatility and Risk

Tenet Healthcare Corporation has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Tenet Healthcare Corporation’s rivals have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Tenet Healthcare Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenet Healthcare Corporation 0 9 5 0 2.36
Tenet Healthcare Corporation Competitors 200 1347 1892 35 2.51

Tenet Healthcare Corporation currently has a consensus target price of $20.00, suggesting a potential upside of 44.30%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 4.69%. Given Tenet Healthcare Corporation’s higher possible upside, analysts clearly believe Tenet Healthcare Corporation is more favorable than its rivals.

Insider and Institutional Ownership

75.7% of shares of all “Healthcare Facilities & Services” companies are owned by institutional investors. 3.1% of Tenet Healthcare Corporation shares are owned by company insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Tenet Healthcare Corporation rivals beat Tenet Healthcare Corporation on 8 of the 12 factors compared.

Tenet Healthcare Corporation Company Profile

Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company’s segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children’s hospitals, two specialty hospitals and one critical access hospital. The Company’s Ambulatory Care segment includes the operations of its USPI joint venture and its Aspen facilities. As of December 31, 2016, Conifer provided one or more of the business process services described above from 20 service centers to more than 800 Tenet and non-Tenet hospital and other clients in over 40 states. As of December 31, 2016, the Company operated 20 short-stay surgical hospitals, over 470 outpatient centers, and nine facilities in the United Kingdom.

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