Community Health Systems (NYSE: CYH) and LifePoint Health (NASDAQ:LPNT) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Volatility and Risk
Community Health Systems has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, LifePoint Health has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Community Health Systems and LifePoint Health, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Health Systems||5||9||0||0||1.64|
Community Health Systems currently has a consensus target price of $5.46, indicating a potential upside of 5.99%. LifePoint Health has a consensus target price of $58.08, indicating a potential upside of 17.09%. Given LifePoint Health’s stronger consensus rating and higher possible upside, analysts plainly believe LifePoint Health is more favorable than Community Health Systems.
This table compares Community Health Systems and LifePoint Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Health Systems||-3.97%||-3.10%||-0.22%|
Institutional and Insider Ownership
94.7% of Community Health Systems shares are owned by institutional investors. Comparatively, 99.2% of LifePoint Health shares are owned by institutional investors. 4.7% of Community Health Systems shares are owned by insiders. Comparatively, 8.8% of LifePoint Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Community Health Systems and LifePoint Health’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Community Health Systems||$18.44 billion||0.03||-$1.72 billion||($5.98)||-0.86|
|LifePoint Health||$7.27 billion||0.27||$121.90 million||$4.23||11.73|
LifePoint Health has lower revenue, but higher earnings than Community Health Systems. Community Health Systems is trading at a lower price-to-earnings ratio than LifePoint Health, indicating that it is currently the more affordable of the two stocks.
LifePoint Health beats Community Health Systems on 11 of the 13 factors compared between the two stocks.
Community Health Systems Company Profile
Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.
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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