NeoGenomics (NASDAQ:NEO – Get Free Report) and Universal Health Services (NYSE:UHS – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Profitability
This table compares NeoGenomics and Universal Health Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeoGenomics | -4.10% | -0.99% | -0.59% |
| Universal Health Services | 7.96% | 18.39% | 8.61% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for NeoGenomics and Universal Health Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeoGenomics | 1 | 3 | 8 | 0 | 2.58 |
| Universal Health Services | 1 | 11 | 6 | 0 | 2.28 |
NeoGenomics presently has a consensus price target of $20.88, suggesting a potential upside of 23.08%. Universal Health Services has a consensus price target of $201.00, suggesting a potential upside of 2.93%. Given NeoGenomics’ stronger consensus rating and higher possible upside, research analysts plainly believe NeoGenomics is more favorable than Universal Health Services.
Valuation & Earnings
This table compares NeoGenomics and Universal Health Services”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeoGenomics | $727.33 million | 3.02 | -$108.03 million | ($0.25) | -67.84 |
| Universal Health Services | $17.36 billion | 0.66 | $1.49 billion | $23.91 | 8.17 |
Universal Health Services has higher revenue and earnings than NeoGenomics. NeoGenomics is trading at a lower price-to-earnings ratio than Universal Health Services, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
NeoGenomics has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Universal Health Services has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Insider & Institutional Ownership
98.5% of NeoGenomics shares are held by institutional investors. Comparatively, 86.0% of Universal Health Services shares are held by institutional investors. 1.1% of NeoGenomics shares are held by company insiders. Comparatively, 17.1% of Universal Health Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Universal Health Services beats NeoGenomics on 7 of the 13 factors compared between the two stocks.
About NeoGenomics
NeoGenomics is a cancer-focused diagnostics company that provides laboratory testing and related services to physicians, hospitals, pharmaceutical companies and other healthcare organizations. Its clinical testing helps support the diagnosis and treatment of cancer. The company offers a range of oncology tests, including molecular, cytogenetic, pathology and flow cytometry services. Its capabilities also include next-generation sequencing and liquid biopsy testing, which can help clinicians assess tumor characteristics and inform treatment decisions.
About Universal Health Services
Universal Health Services, Inc. (NYSE: UHS) is a healthcare company that owns and operates hospitals and other healthcare facilities. Its services span acute care, behavioral healthcare and outpatient treatment. The company’s facilities provide services such as inpatient and outpatient medical care, emergency services, psychiatric treatment, substance-use-disorder care and rehabilitation. UHS serves communities across the United States and also has operations in the United Kingdom and Puerto Rico.
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