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 $22.2B against $11.0B — 2.0× the size. Universal Health Services, Inc. trades at the lower P/E: 7.5× against 10.3×. Universal Health Services, Inc. grew revenue faster over the last twelve months: 10.1% against 9.40%. Tenet Healthcare Corporation has the higher net margin (9.90% vs 8.42%) and the higher return on invested capital (16.1% vs 10.5%). Across the 22 metrics below, Universal Health Services, Inc. leads on 13 and Tenet Healthcare Corporation on 9.

Valuation

Metric THC UHS Medical Care Facilities median
P/E 10.28 7.45 20.56
P/S 0.99 0.61 0.85
P/B 3.42 1.46 2.84
Price to free cash flow 7.42 13.06 13.73
EV/EBITDA 6.14 5.84 10.21
EV/Sales 1.48 0.87 1.32
Earnings yield 9.72% 13.41% 2.25%
Free cash flow yield 13.47% 7.66% 4.16%

Profitability

Metric THC UHS Medical Care Facilities median
Gross margin 43.82% 90.69% 30.78%
Operating margin 20.05% 11.36% 5.74%
Net margin 9.90% 8.42% 2.32%
Free cash flow margin 13.35% 4.67% 5.46%
Return on equity 37.25% 20.81% 8.76%
Return on assets 7.55% 9.87% 2.18%
Return on invested capital 16.09% 10.46% 5.01%

Growth

Metric THC UHS Medical Care Facilities median
Revenue growth (TTM) 9.40% 10.05% 7.12%
EPS growth (last fiscal year) (52.63%) 37.34% 17.46%
Revenue growth, 5-year CAGR 3.85% 8.48% 9.58%
Net income growth, 5-year CAGR 28.67% 9.61% 0.00%

Health

Metric THC UHS Medical Care Facilities median
Debt to equity 2.02 0.64 0.37
Current ratio 1.41 1.12 1.20
Net debt to EBITDA 2.34 1.77 1.07

Dividend

Metric THC UHS Medical Care Facilities median
Dividend yield — 0.43% 0.63%
Payout ratio — 0.03 0.13

Size

Metric THC UHS Medical Care Facilities median
Market cap 22.15b 11.04b 1.47b

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