TeamHealth Holdings (NYSE: TMH) and LifePoint Health (NASDAQ:LPNT) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a summary of current recommendations for TeamHealth Holdings and LifePoint Health, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TeamHealth Holdings 0 9 1 0 2.10
LifePoint Health 2 8 3 0 2.08

TeamHealth Holdings presently has a consensus price target of $42.29, indicating a potential downside of 2.79%. LifePoint Health has a consensus price target of $65.50, indicating a potential upside of 16.96%. Given LifePoint Health’s higher probable upside, analysts clearly believe LifePoint Health is more favorable than TeamHealth Holdings.

Valuation and Earnings

This table compares TeamHealth Holdings and LifePoint Health’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TeamHealth Holdings N/A N/A N/A $0.61 71.31
LifePoint Health $6.42 billion 0.35 $760.40 million $4.48 12.50

LifePoint Health has higher revenue and earnings than TeamHealth Holdings. LifePoint Health is trading at a lower price-to-earnings ratio than TeamHealth Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

TeamHealth Holdings has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, LifePoint Health has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares TeamHealth Holdings and LifePoint Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TeamHealth Holdings 0.92% 5.98% 0.99%
LifePoint Health 2.61% 7.40% 2.66%

Insider & Institutional Ownership

99.5% of LifePoint Health shares are held by institutional investors. 1.3% of TeamHealth Holdings shares are held by company insiders. Comparatively, 7.3% of LifePoint Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

LifePoint Health beats TeamHealth Holdings on 10 of the 11 factors compared between the two stocks.

TeamHealth Holdings Company Profile

Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.

LifePoint Health Company Profile

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. As of December 31, 2016, the Company operated 72 hospital campuses in 22 states, having a total of 9,424 licensed beds. It offers a range of general and specialized healthcare services to patients through a network of hospitals and outpatient facilities. Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services, and in some of its hospitals, the Company offers specialized services, such as open-heart surgery, skilled nursing, psychiatric care and neuro-surgery. It provides outpatient services, such as same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine and lithotripsy.

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