DaVita Inc. (DVA) vs Tenet Healthcare Corporation (THC)

DaVita Inc. and Tenet Healthcare Corporation are both Medical Care Facilities companies. Tenet Healthcare Corporation is the larger, with a market value of $22.2B against $12.1B — 1.8× the size. Tenet Healthcare Corporation trades at the lower P/E: 10.3× against 15.0×. Tenet Healthcare Corporation grew revenue faster over the last twelve months: 9.40% against 6.45%. Tenet Healthcare Corporation has the higher net margin (9.90% vs 6.05%) and the higher return on invested capital (16.1% vs 13.9%). Across the 21 metrics below, Tenet Healthcare Corporation leads on 15 and DaVita Inc. on 6.

Valuation

Metric DVA THC Medical Care Facilities median
P/E 15.01 10.28 20.56
P/S 0.87 0.99 0.85
P/B n/m 3.42 2.84
Price to free cash flow 6.74 7.42 13.73
EV/EBITDA 7.82 6.14 10.21
EV/Sales 1.58 1.48 1.32
Earnings yield 6.66% 9.72% 2.25%
Free cash flow yield 14.83% 13.47% 4.16%

Profitability

Metric DVA THC Medical Care Facilities median
Gross margin 32.36% 43.82% 30.78%
Operating margin 15.19% 20.05% 5.74%
Net margin 6.05% 9.90% 2.32%
Free cash flow margin 11.61% 13.35% 5.46%
Return on equity (287.31%) 37.25% 8.76%
Return on assets 4.81% 7.55% 2.18%
Return on invested capital 13.90% 16.09% 5.01%

Growth

Metric DVA THC Medical Care Facilities median
Revenue growth (TTM) 6.45% 9.40% 7.12%
EPS growth (last fiscal year) (8.29%) (52.63%) 17.46%
Revenue growth, 5-year CAGR 3.39% 3.85% 9.58%
Net income growth, 5-year CAGR (0.70%) 28.67% 0.00%

Health

Metric DVA THC Medical Care Facilities median
Debt to equity (22.44) 2.02 0.37
Current ratio 1.47 1.41 1.20
Net debt to EBITDA 3.51 2.34 1.07

Dividend

Metric DVA THC Medical Care Facilities median
Dividend yield — — 0.63%
Payout ratio — — 0.13

Size

Metric DVA THC Medical Care Facilities median
Market cap 12.07b 22.15b 1.47b

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