Premier (NASDAQ: PINC) and U.S. Physical Therapy (NYSE:USPH) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
98.9% of Premier shares are held by institutional investors. Comparatively, 95.5% of U.S. Physical Therapy shares are held by institutional investors. 17.1% of Premier shares are held by insiders. Comparatively, 3.1% of U.S. Physical Therapy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Premier and U.S. Physical Therapy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Premier||$1.45 billion||1.20||$440.72 million||($6.33)||-5.15|
|U.S. Physical Therapy||$377.24 million||2.02||$60.41 million||$1.71||35.35|
Premier has higher revenue and earnings than U.S. Physical Therapy. Premier is trading at a lower price-to-earnings ratio than U.S. Physical Therapy, indicating that it is currently the more affordable of the two stocks.
U.S. Physical Therapy pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Premier does not pay a dividend. U.S. Physical Therapy pays out 46.8% of its earnings in the form of a dividend. U.S. Physical Therapy has increased its dividend for 6 consecutive years.
Risk & Volatility
Premier has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, U.S. Physical Therapy has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Premier and U.S. Physical Therapy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|U.S. Physical Therapy||0||2||3||0||2.60|
Premier currently has a consensus target price of $39.60, suggesting a potential upside of 21.51%. U.S. Physical Therapy has a consensus target price of $69.75, suggesting a potential upside of 15.38%. Given Premier’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Premier is more favorable than U.S. Physical Therapy.
This table compares Premier and U.S. Physical Therapy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|U.S. Physical Therapy||5.65%||12.91%||7.01%|
Premier beats U.S. Physical Therapy on 9 of the 17 factors compared between the two stocks.
Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,750 United States hospitals and more than 130,000 other provider organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.
About U.S. Physical Therapy
U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics that provide pre-and post-operative care, and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers and neurological-related injuries. The Company’s segment is made up of various clinics within partnerships. The Company primarily operates through subsidiary clinic partnerships, in which it owns a general partnership interest and a limited partnership interest, and the managing therapists of the clinics owns the remaining limited partnership interest in the clinics. The Company operates 562 physical therapy clinics in 42 states. There are approximately 380 clinics operated under Clinic Partnerships and over 100 operated as Company-owned Facilities. In addition to its owned clinics, it also manages physical therapy facilities for third parties, primarily physicians, with over 29 third-party facilities under management.
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