Surgery Partners (SGRY) versus Its Competitors Critical Analysis

Surgery Partners (NASDAQ: SGRY) is one of 17 public companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it compare to its peers? We will compare Surgery Partners to similar businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Surgery Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Surgery Partners -0.33% 1.03% 0.20%
Surgery Partners Competitors 5.01% 6.04% 5.07%

Analyst Ratings

This is a summary of recent ratings for Surgery Partners and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Surgery Partners 1 3 4 0 2.38
Surgery Partners Competitors 57 321 502 9 2.52

Surgery Partners currently has a consensus target price of $18.00, suggesting a potential upside of 105.71%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 11.01%. Given Surgery Partners’ higher probable upside, equities research analysts plainly believe Surgery Partners is more favorable than its peers.

Earnings & Valuation

This table compares Surgery Partners and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Surgery Partners $1.15 billion $9.45 million -97.22
Surgery Partners Competitors $1.06 billion -$22.56 million 521.87

Surgery Partners has higher revenue and earnings than its peers. Surgery Partners is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

37.1% of Surgery Partners shares are owned by institutional investors. Comparatively, 64.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 7.6% of Surgery Partners shares are owned by company insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Surgery Partners peers beat Surgery Partners on 9 of the 12 factors compared.

About Surgery Partners

Surgery Partners, Inc. is a healthcare services company. The Company operates in three lines of business across the United States: Surgical Facility Services, Ancillary Services and Optical Services. The Company’s Surgical Facility Services segment consists of the operation of ambulatory surgery centers (ASCs) and surgical hospitals, which include its anesthesia services. The Company’s surgical facilities primarily provide non-emergency surgical procedures across a range of specialties, which include gastrointestinal (GI), general surgery, ophthalmology, orthopedics and pain management. The Company’s Ancillary Services segment consists of a diagnostic laboratory, a specialty pharmacy and multi-specialty physician practices. The Company’s physician practices include its owned and operated physician practices pursuant to long-term management service agreements. The Company’s Optical Services segment consists of an optical laboratory, an optical products group purchasing organization.

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