LifePoint Health (NASDAQ: LPNT) and MEDNAX (NYSE:MD) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
LifePoint Health has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, MEDNAX has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
95.2% of MEDNAX shares are held by institutional investors. 8.8% of LifePoint Health shares are held by company insiders. Comparatively, 2.4% of MEDNAX shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares LifePoint Health and MEDNAX’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LifePoint Health||$7.27 billion||0.27||$121.90 million||$4.23||11.63|
|MEDNAX||$3.46 billion||1.54||$320.37 million||$3.45||16.41|
MEDNAX has lower revenue, but higher earnings than LifePoint Health. LifePoint Health is trading at a lower price-to-earnings ratio than MEDNAX, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for LifePoint Health and MEDNAX, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LifePoint Health currently has a consensus target price of $57.64, indicating a potential upside of 17.16%. MEDNAX has a consensus target price of $54.45, indicating a potential downside of 3.81%. Given LifePoint Health’s stronger consensus rating and higher possible upside, research analysts clearly believe LifePoint Health is more favorable than MEDNAX.
This table compares LifePoint Health and MEDNAX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
LifePoint Health Company Profile
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.
MEDNAX Company Profile
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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