Tenet Healthcare (NYSE:THC) and Five Star Senior Living (NASDAQ:FVE) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Tenet Healthcare and Five Star Senior Living, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Tenet Healthcare | 1 | 3 | 10 | 0 | 2.64 |
| Five Star Senior Living | 0 | 0 | 1 | 0 | 3.00 |
Tenet Healthcare presently has a consensus price target of $53.4118, indicating a potential downside of 13.89%. Five Star Senior Living has a consensus price target of $8.00, indicating a potential upside of 34.00%. Given Five Star Senior Living's stronger consensus rating and higher possible upside, analysts plainly believe Five Star Senior Living is more favorable than Tenet Healthcare.
Profitability
This table compares Tenet Healthcare and Five Star Senior Living's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Tenet Healthcare | -0.07% | 82.39% | 1.77% |
| Five Star Senior Living | 0.46% | -2.56% | -1.21% |
Earnings and Valuation
This table compares Tenet Healthcare and Five Star Senior Living's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Tenet Healthcare | $18.48 billion | 0.36 | $-232,000,000.00 | $2.68 | 23.15 |
| Five Star Senior Living | $1.42 billion | 0.13 | $-20,000,000.00 | N/A | N/A |
Five Star Senior Living has lower revenue, but higher earnings than Tenet Healthcare.
Volatility and Risk
Tenet Healthcare has a beta of 2.66, suggesting that its stock price is 166% more volatile than the S&P 500. Comparatively, Five Star Senior Living has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Insider & Institutional Ownership
93.1% of Tenet Healthcare shares are owned by institutional investors. Comparatively, 35.1% of Five Star Senior Living shares are owned by institutional investors. 1.7% of Tenet Healthcare shares are owned by company insiders. Comparatively, 6.8% of Five Star Senior Living shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Tenet Healthcare beats Five Star Senior Living on 7 of the 13 factors compared between the two stocks.
