U.S. Physical Therapy (NYSE: USPH) and Envision Healthcare Corp (NASDAQ:AMSG) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitabiliy, valuation, risk, institutional ownership and earnings.

Insider & Institutional Ownership

96.1% of U.S. Physical Therapy shares are held by institutional investors. Comparatively, 98.7% of Envision Healthcare Corp shares are held by institutional investors. 4.3% of U.S. Physical Therapy shares are held by insiders. Comparatively, 2.3% of Envision Healthcare Corp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares U.S. Physical Therapy and Envision Healthcare Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
U.S. Physical Therapy $377.24 million 2.07 $60.41 million $1.71 36.32
Envision Healthcare Corp N/A N/A N/A $3.26 20.78

U.S. Physical Therapy has higher revenue and earnings than Envision Healthcare Corp. Envision Healthcare Corp is trading at a lower price-to-earnings ratio than U.S. Physical Therapy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares U.S. Physical Therapy and Envision Healthcare Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Physical Therapy 5.65% 12.91% 7.01%
Envision Healthcare Corp 4.64% 1.89% 2.09%

Risk & Volatility

U.S. Physical Therapy has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Envision Healthcare Corp has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Dividends

U.S. Physical Therapy pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Envision Healthcare Corp does not pay a dividend. U.S. Physical Therapy pays out 46.8% of its earnings in the form of a dividend. Envision Healthcare Corp has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for U.S. Physical Therapy and Envision Healthcare Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Physical Therapy 0 2 2 0 2.50
Envision Healthcare Corp 0 1 5 0 2.83

U.S. Physical Therapy presently has a consensus price target of $68.33, indicating a potential upside of 10.04%. Envision Healthcare Corp has a consensus price target of $85.60, indicating a potential upside of 26.35%. Given Envision Healthcare Corp’s stronger consensus rating and higher probable upside, analysts clearly believe Envision Healthcare Corp is more favorable than U.S. Physical Therapy.

U.S. Physical Therapy Company Profile

U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics that provide pre-and post-operative care, and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers and neurological-related injuries. The Company’s segment is made up of various clinics within partnerships. The Company primarily operates through subsidiary clinic partnerships, in which it owns a general partnership interest and a limited partnership interest, and the managing therapists of the clinics owns the remaining limited partnership interest in the clinics. The Company operates 562 physical therapy clinics in 42 states. There are approximately 380 clinics operated under Clinic Partnerships and over 100 operated as Company-owned Facilities. In addition to its owned clinics, it also manages physical therapy facilities for third parties, primarily physicians, with over 29 third-party facilities under management.

Envision Healthcare Corp Company Profile

Envision Healthcare Corporation is a provider of healthcare services. The Company offers a range clinical solutions, including physician-led services, medical transportation, ambulatory services and post-acute services. The Company operates through three segments: physician services, medical transportation and ambulatory services. The physician services segment includes the Company’s hospital-based and non-hospital-based physician services business. The medical transportation segment includes the Company’s community-based medical transportation services, including emergency 911, non-emergency, managed transportation, air ambulance and disaster response services. The ambulatory services segment includes the Company’s ambulatory surgery business, which acquires, develops, owns and operates ambulatory surgery centers (ASCs) and surgical hospitals in partnership with physicians and health systems.

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