Tenet Healthcare Corporation (THC) vs Universal Health Services, Inc. (UHS)

Tenet Healthcare Corporation and Universal Health Services, Inc. are both Medical Care Facilities companies. Tenet Healthcare Corporation is the larger, with a market value of $22.8B against $11.7B — 1.9× the size. Tenet Healthcare Corporation trades at the lower P/E: 7.6× against 8.2×. Universal Health Services, Inc. grew revenue faster over the last twelve months: 8.00% against 6.22%. Tenet Healthcare Corporation has the higher net margin (13.1% vs 7.96%) and the higher return on invested capital (21.6% vs 9.42%). Across the 22 metrics below, Tenet Healthcare Corporation leads on 14 and Universal Health Services, Inc. on 8.

Valuation

Metric THC UHS Medical Care Facilities median
P/E 7.64 8.16 17.41
P/S 1.04 0.63 0.98
P/B 3.09 163.82 3.12
Price to free cash flow 6.89 10.26 16.05
EV/EBITDA 4.69 6.36 11.86
EV/Sales 1.51 0.94 1.37
Earnings yield 13.09% 12.25% 3.53%
Free cash flow yield 14.51% 9.75% 5.41%

Profitability

Metric THC UHS Medical Care Facilities median
Gross margin 46.23% 90.74% 30.78%
Operating margin 28.10% 10.85% 5.97%
Net margin 13.09% 7.96% 3.05%
Free cash flow margin 15.02% 6.18% 6.97%
Return on equity 43.93% 40.04% 5.03%
Return on assets 9.50% 8.99% 2.78%
Return on invested capital 21.64% 9.42% 5.47%

Growth

Metric THC UHS Medical Care Facilities median
Revenue growth (TTM) 6.22% 8.00% 6.38%
EPS growth (last fiscal year) (52.63%) 37.34% 21.70%
Revenue growth, 5-year CAGR 3.85% 8.48% 9.94%
Net income growth, 5-year CAGR 28.67% 9.61% 0.00%

Health

Metric THC UHS Medical Care Facilities median
Debt to equity 1.79 0.74 0.37
Current ratio 1.58 1.37 1.37
Net debt to EBITDA 2.34 1.77 1.32

Dividend

Metric THC UHS Medical Care Facilities median
Dividend yield — 0.40% 0.57%
Payout ratio — 0.03 0.12

Size

Metric THC UHS Medical Care Facilities median
Market cap 22.80b 11.70b 1.62b

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