Quorum Health (NYSE: QHC) is one of 15 publicly-traded companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it compare to its rivals? We will compare Quorum Health to similar companies based on the strength of its valuation, profitability, risk, earnings, dividends, institutional ownership and analyst recommendations.

Risk and Volatility

Quorum Health has a beta of 7.53, meaning that its share price is 653% more volatile than the S&P 500. Comparatively, Quorum Health’s rivals have a beta of 1.43, meaning that their average share price is 43% more volatile than the S&P 500.

Profitability

This table compares Quorum Health and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quorum Health -8.28% -38.34% -3.34%
Quorum Health Competitors 3.52% 3.52% 4.31%

Institutional & Insider Ownership

81.8% of Quorum Health shares are held by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by institutional investors. 4.7% of Quorum Health shares are held by company insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Quorum Health and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Quorum Health $2.42 billion -$347.68 million -0.74
Quorum Health Competitors $1.06 billion -$22.56 million 755.93

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Quorum Health and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quorum Health 1 3 0 0 1.75
Quorum Health Competitors 59 327 512 9 2.52

Quorum Health presently has a consensus target price of $3.88, indicating a potential downside of 16.49%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 19.82%. Given Quorum Health’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Quorum Health has less favorable growth aspects than its rivals.

Summary

Quorum Health rivals beat Quorum Health on 9 of the 12 factors compared.

About Quorum Health

Quorum Health Corporation is an operator and manager of general acute care hospitals and outpatient services in the United States. The Company operates in two segments: Hospital operations, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services, and hospital management advisory and consulting services, which includes Quorum Health Resources, LLC (QHR). It operates QHR, which is a hospital management advisory and consulting services that provides services to non-affiliated general acute care hospitals. Its hospitals and its affiliated businesses offer services, such as general acute care, emergency room, general and specialty surgery and rehabilitation services.

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