Critical Survey: Mednax (MD) & Its Peers

Mednax (NYSE: MD) is one of 43 public companies in the “Healthcare Facilities & Services” industry, but how does it weigh in compared to its competitors? We will compare Mednax to similar businesses based on the strength of its valuation, institutional ownership, profitability, dividends, risk, analyst recommendations and earnings.

Valuation and Earnings

This table compares Mednax and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Mednax $3.18 billion $324.91 million 17.64
Mednax Competitors $6.37 billion $198.65 million 431.83

Mednax’s competitors have higher revenue, but lower earnings than Mednax. Mednax is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

96.4% of Mednax shares are held by institutional investors. Comparatively, 75.2% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 2.4% of Mednax shares are held by insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Mednax and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mednax 7.76% 10.80% 5.57%
Mednax Competitors 12.17% 0.09% 1.09%

Risk and Volatility

Mednax has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Mednax’s competitors have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Mednax and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mednax 1 8 2 0 2.09
Mednax Competitors 206 1370 1897 35 2.50

Mednax currently has a consensus target price of $54.50, indicating a potential upside of 9.20%. As a group, “Healthcare Facilities & Services” companies have a potential upside of 4.32%. Given Mednax’s higher possible upside, equities research analysts plainly believe Mednax is more favorable than its competitors.

Summary

Mednax competitors beat Mednax on 8 of the 13 factors compared.

About Mednax

MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company’s national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.

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