DaVita HealthCare Partners (NYSE: DVA) and LifePoint Health (NASDAQ:LPNT) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
83.3% of DaVita HealthCare Partners shares are owned by institutional investors. Comparatively, 99.5% of LifePoint Health shares are owned by institutional investors. 2.0% of DaVita HealthCare Partners shares are owned by company insiders. Comparatively, 8.8% of LifePoint Health 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.
Valuation & Earnings
This table compares DaVita HealthCare Partners and LifePoint Health’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DaVita HealthCare Partners||$15.01 billion||0.69||$2.45 billion||$6.50||8.36|
|LifePoint Health||$6.42 billion||0.34||$760.40 million||$4.48||12.21|
DaVita HealthCare Partners has higher revenue and earnings than LifePoint Health. DaVita HealthCare Partners is trading at a lower price-to-earnings ratio than LifePoint Health, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for DaVita HealthCare Partners and LifePoint Health, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DaVita HealthCare Partners||2||6||1||0||1.89|
DaVita HealthCare Partners presently has a consensus price target of $66.50, suggesting a potential upside of 22.42%. LifePoint Health has a consensus price target of $65.67, suggesting a potential upside of 20.05%. Given DaVita HealthCare Partners’ higher probable upside, research analysts clearly believe DaVita HealthCare Partners is more favorable than LifePoint Health.
This table compares DaVita HealthCare Partners and LifePoint Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DaVita HealthCare Partners||8.68%||14.02%||3.78%|
Risk & Volatility
DaVita HealthCare Partners has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, LifePoint Health has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
DaVita HealthCare Partners beats LifePoint Health on 10 of the 14 factors compared between the two stocks.
DaVita HealthCare Partners Company Profile
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
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.
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