Comparing Air Methods (AIRM) and LifePoint Health (LPNT)

Air Methods (NASDAQ: AIRM) and LifePoint Health (NASDAQ:LPNT) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Air Methods and LifePoint Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Methods 0 3 1 0 2.25
LifePoint Health 1 11 5 0 2.24

Air Methods currently has a consensus price target of $43.00, indicating a potential upside of 0.12%. LifePoint Health has a consensus price target of $58.08, indicating a potential upside of 14.10%. Given LifePoint Health’s higher possible upside, analysts clearly believe LifePoint Health is more favorable than Air Methods.

Profitability

This table compares Air Methods and LifePoint Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Methods 6.67% 14.18% 4.43%
LifePoint Health 2.45% 7.01% 2.53%

Insider and Institutional Ownership

99.2% of LifePoint Health shares are owned by institutional investors. 9.0% of Air Methods shares are owned by insiders. Comparatively, 8.8% of LifePoint Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Air Methods and LifePoint Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Methods N/A N/A N/A $2.59 16.58
LifePoint Health $7.27 billion 0.28 $121.90 million $4.22 12.06

LifePoint Health has higher revenue and earnings than Air Methods. LifePoint Health is trading at a lower price-to-earnings ratio than Air Methods, indicating that it is currently the more affordable of the two stocks.

Summary

Air Methods beats LifePoint Health on 6 of the 11 factors compared between the two stocks.

Air Methods Company Profile

Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.

LifePoint Health Company Profile

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. As of December 31, 2016, the Company operated 72 hospital campuses in 22 states, having a total of 9,424 licensed beds. It offers a range of general and specialized healthcare services to patients through a network of hospitals and outpatient facilities. Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services, and in some of its hospitals, the Company offers specialized services, such as open-heart surgery, skilled nursing, psychiatric care and neuro-surgery. It provides outpatient services, such as same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine and lithotripsy.

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