Community Health Systems (NYSE: CYH) is one of 54 public companies in the “Healthcare Facilities & Services” industry, but how does it contrast to its peers? We will compare Community Health Systems to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Profitability

This table compares Community Health Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Health Systems -3.97% -3.10% -0.22%
Community Health Systems Competitors 6.74% 0.49% 0.59%

Volatility and Risk

Community Health Systems has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Community Health Systems’ peers have a beta of 0.84, meaning that their average stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Community Health Systems and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Health Systems 3 10 0 0 1.77
Community Health Systems Competitors 203 1370 1910 35 2.51

Community Health Systems presently has a consensus target price of $5.79, indicating a potential upside of 33.76%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 9.95%. Given Community Health Systems’ higher probable upside, equities analysts clearly believe Community Health Systems is more favorable than its peers.

Institutional & Insider Ownership

99.6% of Community Health Systems shares are owned by institutional investors. Comparatively, 75.6% of shares of all “Healthcare Facilities & Services” companies are owned by institutional investors. 4.7% of Community Health Systems shares are owned by company insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Community Health Systems and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Community Health Systems $18.44 billion -$1.72 billion -0.74
Community Health Systems Competitors $6.37 billion $198.65 million 212.79

Community Health Systems has higher revenue, but lower earnings than its peers. Community Health Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Community Health Systems peers beat Community Health Systems on 8 of the 12 factors compared.

About Community Health Systems

Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.

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