Envision Healthcare Corp (NASDAQ: AMSG) and Surgery Partners (NASDAQ:SGRY) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Envision Healthcare Corp and Surgery Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envision Healthcare Corp 5.34% 3.18% 2.43%
Surgery Partners 0.63% 6.02% 0.81%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Envision Healthcare Corp and Surgery Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envision Healthcare Corp 0 1 3 0 2.75
Surgery Partners 1 2 5 0 2.50

Envision Healthcare Corp currently has a consensus target price of $87.33, indicating a potential upside of 28.91%. Surgery Partners has a consensus target price of $18.83, indicating a potential upside of 106.96%. Given Surgery Partners’ higher probable upside, analysts clearly believe Surgery Partners is more favorable than Envision Healthcare Corp.

Risk & Volatility

Envision Healthcare Corp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.

Institutional & Insider Ownership

98.7% of Envision Healthcare Corp shares are owned by institutional investors. Comparatively, 38.1% of Surgery Partners shares are owned by institutional investors. 2.3% of Envision Healthcare Corp shares are owned by company insiders. Comparatively, 7.5% of Surgery Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Envision Healthcare Corp and Surgery Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Envision Healthcare Corp N/A N/A N/A $3.26 20.78
Surgery Partners $1.13 billion 0.39 $231.39 million $0.15 60.67

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

Summary

Surgery Partners beats Envision Healthcare Corp on 6 of the 11 factors compared between the two stocks.

About Envision Healthcare Corp

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.

About Surgery Partners

Surgery Partners, Inc. is a healthcare services company. The Company operates in three lines of business across the United States: Surgical Facility Services, Ancillary Services and Optical Services. The Company’s Surgical Facility Services segment consists of the operation of ambulatory surgery centers (ASCs) and surgical hospitals, which include its anesthesia services. The Company’s surgical facilities primarily provide non-emergency surgical procedures across a range of specialties, which include gastrointestinal (GI), general surgery, ophthalmology, orthopedics and pain management. The Company’s Ancillary Services segment consists of a diagnostic laboratory, a specialty pharmacy and multi-specialty physician practices. The Company’s physician practices include its owned and operated physician practices pursuant to long-term management service agreements. The Company’s Optical Services segment consists of an optical laboratory, an optical products group purchasing organization.

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