Universal Health Services (NYSE:UHS) and U.S. Physical Therapy (NYSE:USPH) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Profitability
This table compares Universal Health Services and U.S. Physical Therapy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Universal Health Services | 7.74% | 15.61% | 7.37% |
| U.S. Physical Therapy | 7.21% | 11.20% | 4.77% |
Valuation and Earnings
This table compares Universal Health Services and U.S. Physical Therapy's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Universal Health Services | $11.38 billion | 1.15 | $814.85 million | $9.99 | 15.37 |
| U.S. Physical Therapy | $481.97 million | 3.01 | $40.04 million | $2.82 | 39.88 |
Universal Health Services has higher revenue and earnings than U.S. Physical Therapy. Universal Health Services is trading at a lower price-to-earnings ratio than U.S. Physical Therapy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
82.3% of Universal Health Services shares are held by institutional investors. 12.6% of Universal Health Services shares are held by insiders. Comparatively, 2.0% of U.S. Physical Therapy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Universal Health Services has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, U.S. Physical Therapy has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Universal Health Services and U.S. Physical Therapy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Universal Health Services | 2 | 2 | 5 | 0 | 2.33 |
| U.S. Physical Therapy | 0 | 1 | 1 | 0 | 2.50 |
Universal Health Services currently has a consensus price target of $146.90, indicating a potential downside of 4.32%. U.S. Physical Therapy has a consensus price target of $117.50, indicating a potential upside of 4.49%. Given U.S. Physical Therapy's stronger consensus rating and higher probable upside, analysts plainly believe U.S. Physical Therapy is more favorable than Universal Health Services.
Dividends
Universal Health Services pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. U.S. Physical Therapy pays an annual dividend of $1.40 per share and has a dividend yield of 1.2%. Universal Health Services pays out 8.0% of its earnings in the form of a dividend. U.S. Physical Therapy pays out 49.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Universal Health Services has increased its dividend for 1 consecutive years and U.S. Physical Therapy has increased its dividend for 1 consecutive years.
Summary
Universal Health Services beats U.S. Physical Therapy on 10 of the 16 factors compared between the two stocks.
