Option Care Health, Inc. (OPCH) vs Surgery Partners, Inc. (SGRY)

Option Care Health, Inc. and Surgery Partners, Inc. are both Medical Care Facilities companies. Option Care Health, Inc. is the larger, with a market value of $4.7B against $3.0B — 1.6× the size. Surgery Partners, Inc. has negative trailing earnings, so its P/E is not meaningful; Option Care Health, Inc. trades at 22.6×. Option Care Health, Inc. grew revenue faster over the last twelve months: 4.01% against 3.99%. Option Care Health, Inc. has the higher net margin (3.74% vs −2.63%) and the higher return on invested capital (9.72% vs 3.61%). Across the 20 metrics below, Option Care Health, Inc. leads on 11 and Surgery Partners, Inc. on 9.

Valuation

Metric OPCH SGRY Medical Care Facilities median
P/E 22.62 n/m 17.41
P/S 0.82 0.89 0.98
P/B 3.75 0.96 3.12
Price to free cash flow 16.76 15.59 16.05
EV/EBITDA 13.67 11.18 11.86
EV/Sales 0.97 1.94 1.37
Earnings yield 4.42% (3.02%) 3.53%
Free cash flow yield 5.97% 6.41% 5.41%

Profitability

Metric OPCH SGRY Medical Care Facilities median
Gross margin 19.07% 22.51% 30.78%
Operating margin 5.88% 12.06% 5.97%
Net margin 3.74% (2.63%) 3.05%
Free cash flow margin 4.90% 5.69% 6.97%
Return on equity 16.04% (2.83%) 5.03%
Return on assets 6.19% (1.11%) 2.78%
Return on invested capital 9.72% 3.61% 5.47%

Growth

Metric OPCH SGRY Medical Care Facilities median
Revenue growth (TTM) 4.01% 3.99% 6.38%
EPS growth (last fiscal year) 3.25% 54.14% 21.70%
Revenue growth, 5-year CAGR 13.25% 12.21% 9.94%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OPCH SGRY Medical Care Facilities median
Debt to equity 0.87 1.21 0.37
Current ratio 1.54 1.95 1.37
Net debt to EBITDA 2.25 5.88 1.32

Dividend

Metric OPCH SGRY Medical Care Facilities median
Dividend yield — — 0.57%
Payout ratio — — 0.12

Size

Metric OPCH SGRY Medical Care Facilities median
Market cap 4.72b 2.99b 1.62b

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