Privia Health Group (NASDAQ:PRVA – Get Free Report) and Cardinal Health (NYSE:CAH – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Profitability
This table compares Privia Health Group and Cardinal Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Privia Health Group | 1.19% | 3.52% | 2.00% |
| Cardinal Health | 0.67% | -98.53% | 4.69% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Privia Health Group and Cardinal Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Privia Health Group | 0 | 3 | 9 | 0 | 2.75 |
| Cardinal Health | 0 | 3 | 16 | 0 | 2.84 |
Privia Health Group presently has a consensus target price of $31.25, indicating a potential upside of 27.34%. Cardinal Health has a consensus target price of $274.00, indicating a potential upside of 0.02%. Given Privia Health Group’s higher possible upside, equities research analysts plainly believe Privia Health Group is more favorable than Cardinal Health.
Valuation & Earnings
This table compares Privia Health Group and Cardinal Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Privia Health Group | $2.12 billion | 1.48 | $22.92 million | $0.26 | 94.38 |
| Cardinal Health | $254.25 billion | 0.25 | $1.71 billion | $7.73 | 35.44 |
Cardinal Health has higher revenue and earnings than Privia Health Group. Cardinal Health is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.5% of Privia Health Group shares are held by institutional investors. Comparatively, 87.2% of Cardinal Health shares are held by institutional investors. 5.7% of Privia Health Group shares are held by company insiders. Comparatively, 0.1% of Cardinal Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Privia Health Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Cardinal Health has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.
Summary
Privia Health Group beats Cardinal Health on 8 of the 14 factors compared between the two stocks.
About Privia Health Group
Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.
About Cardinal Health
Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
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