Civitas Solutions (NYSE: CIVI) and Envision Healthcare Corporation (NYSE:EVHC) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitabiliy, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Civitas Solutions and Envision Healthcare Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Civitas Solutions 1.19% 16.20% 2.27%
Envision Healthcare Corporation -9.16% 5.75% 2.41%

Insider & Institutional Ownership

93.4% of Civitas Solutions shares are owned by institutional investors. Comparatively, 67.5% of Envision Healthcare Corporation shares are owned by institutional investors. 5.3% of Civitas Solutions shares are owned by company insiders. Comparatively, 3.1% of Envision Healthcare Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Civitas Solutions and Envision Healthcare Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Civitas Solutions $1.44 billion 0.44 $147.66 million $0.46 37.07
Envision Healthcare Corporation $4.85 billion 1.40 $913.40 million ($4.19) -13.99

Envision Healthcare Corporation has higher revenue and earnings than Civitas Solutions. Envision Healthcare Corporation is trading at a lower price-to-earnings ratio than Civitas Solutions, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Civitas Solutions has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Envision Healthcare Corporation has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Civitas Solutions and Envision Healthcare Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Civitas Solutions 0 2 2 0 2.50
Envision Healthcare Corporation 0 2 9 1 2.92

Civitas Solutions presently has a consensus target price of $25.00, suggesting a potential upside of 46.63%. Envision Healthcare Corporation has a consensus target price of $71.50, suggesting a potential upside of 21.95%. Given Civitas Solutions’ higher probable upside, research analysts plainly believe Civitas Solutions is more favorable than Envision Healthcare Corporation.

Summary

Envision Healthcare Corporation beats Civitas Solutions on 8 of the 14 factors compared between the two stocks.

Civitas Solutions Company Profile

Civitas Solutions, Inc. is a provider of home- and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. The Company operates through two segments: Human Services and Post-Acute Specialty Rehabilitation Services (SRS). The Human Services segment provides home- and community-based human services to individuals with intellectual and/or developmental disabilities (I/DD), youth with emotional, behavioral and/or medically complex challenges or at-risk youth (ARY), and elders. The SRS segment delivers healthcare and community-based health and human services to individuals having suffered acquired brain injury, spinal injuries, and other catastrophic injuries and illnesses. Within its SRS segment, its NeuroRestorative business unit is focused on rehabilitation and transitional living services, and its CareMeridian business unit is focused on the medically-intensive post-acute care services.

Envision Healthcare Corporation Company Profile

Envision Healthcare Holdings, Inc., formerly CDRT Holding Corporation, is a holding company. The Company, through its subsidiary, provides physician-led medical services in the United States. It operates in two segments: EmCare Holdings, Inc. (EmCare) and American Medical Response, Inc. (AMR). Its EmCare segment is a provider of integrated facility-based and post-acute care physician services to healthcare facilities in the United States. Its AMR segment has developed a network of ambulance services and other healthcare transportation services in the United States. It provides Emergency Department (ED) physician services to hospitals and other facilities. Its hospitalist services include inpatient physician services. It provides anesthesiology services to hospitals, free-standing ambulatory surgery centers and physician offices. It provides radiology, including tele-radiology services to hospitals. It offers management, oversight and surgeon staffing for trauma surgery services.

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