Tenet Healthcare (NYSE:THC – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
95.4% of Tenet Healthcare shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 1.0% of Tenet Healthcare shares are owned by insiders. Comparatively, 23.5% of Clover Health Investments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Tenet Healthcare has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Tenet Healthcare | 10.27% | 26.76% | 5.55% |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
Earnings and Valuation
This table compares Tenet Healthcare and Clover Health Investments”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tenet Healthcare | $22.64 billion | 0.93 | $1.41 billion | $25.93 | 10.09 |
| Clover Health Investments | $2.48 billion | 0.97 | -$85.55 million | ($0.05) | -90.80 |
Tenet Healthcare has higher revenue and earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Tenet Healthcare, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Tenet Healthcare and Clover Health Investments, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tenet Healthcare | 0 | 1 | 18 | 1 | 3.00 |
| Clover Health Investments | 1 | 3 | 2 | 0 | 2.17 |
Tenet Healthcare presently has a consensus price target of $275.53, indicating a potential upside of 5.27%. Clover Health Investments has a consensus price target of $4.75, indicating a potential upside of 4.63%. Given Tenet Healthcare’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tenet Healthcare is more favorable than Clover Health Investments.
Summary
Tenet Healthcare beats Clover Health Investments on 12 of the 15 factors compared between the two stocks.
About Tenet Healthcare
Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
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