Quorum Health Corporation (NYSE: QHC) and BioScrip (NASDAQ:BIOS) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitabiliy, institutional ownership, earnings, analyst recommendations and valuation.
Profitability
This table compares Quorum Health Corporation and BioScrip’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quorum Health Corporation | -16.94% | -60.49% | -7.21% |
| BioScrip | -5.62% | N/A | -6.39% |
Earnings & Valuation
This table compares Quorum Health Corporation and BioScrip’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Quorum Health Corporation | $2.12 billion | 0.05 | $84.84 million | N/A | N/A |
| BioScrip | $914.94 million | 0.37 | $25.34 million | ($0.56) | -5.02 |
Quorum Health Corporation has higher revenue and earnings than BioScrip.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Quorum Health Corporation and BioScrip, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quorum Health Corporation | 1 | 4 | 0 | 0 | 1.80 |
| BioScrip | 0 | 0 | 3 | 0 | 3.00 |
Quorum Health Corporation presently has a consensus price target of $4.60, suggesting a potential upside of 42.86%. BioScrip has a consensus price target of $3.67, suggesting a potential upside of 30.49%. Given Quorum Health Corporation’s higher possible upside, analysts clearly believe Quorum Health Corporation is more favorable than BioScrip.
Institutional & Insider Ownership
88.1% of Quorum Health Corporation shares are owned by institutional investors. Comparatively, 83.2% of BioScrip shares are owned by institutional investors. 4.7% of Quorum Health Corporation shares are owned by company insiders. Comparatively, 2.3% of BioScrip shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Quorum Health Corporation has a beta of 9.77, meaning that its stock price is 877% more volatile than the S&P 500. Comparatively, BioScrip has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
About Quorum Health Corporation
Quorum Health Corporation is an operator and manager of general acute care hospitals and outpatient services in the United States. The Company operates in two segments: Hospital operations, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services, and hospital management advisory and consulting services, which includes Quorum Health Resources, LLC (QHR). It operates QHR, which is a hospital management advisory and consulting services that provides services to non-affiliated general acute care hospitals. Its hospitals and its affiliated businesses offer services, such as general acute care, emergency room, general and specialty surgery and rehabilitation services. On April 1, 2016, Community Health Systems, Inc. announced that its board of directors has approved the distribution to its stockholders of 100% of the common stock of a new, independent publicly traded company, Quorum Health Corporation.
About BioScrip
BioScrip, Inc. is engaged in providing infusion solutions. The Company partners with physicians, hospital systems, skilled nursing facilities, healthcare payors and pharmaceutical manufacturers to provide patients access to post-acute care services. The Company operates through Infusion Services segment. The Company operates through approximately 70 service locations in over 30 states. The Company offers home infusion services to provide clinical management services and the delivery of prescription medications. The Company provides services in coordination with, and under the direction of, the patient’s physician. The Company’s multidisciplinary team of clinicians, including pharmacists, nurses, dietitians and respiratory therapists, work with the physician to develop a plan of care suited to the patient’s specific needs. Its platform provides service capabilities to deliver clinical management services that offer patients a community-based and home-based care environment.
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