Cardinal Health (NYSE:CAH – Get Free Report) and Privia Health Group (NASDAQ:PRVA – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Cardinal Health and Privia Health Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardinal Health | 0.67% | -98.53% | 4.69% |
| Privia Health Group | 1.19% | 3.52% | 2.00% |
Insider & Institutional Ownership
87.2% of Cardinal Health shares are owned by institutional investors. Comparatively, 94.5% of Privia Health Group shares are owned by institutional investors. 0.1% of Cardinal Health shares are owned by insiders. Comparatively, 5.7% of Privia Health Group shares are owned by 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 & Valuation
This table compares Cardinal Health and Privia Health Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardinal Health | $254.25 billion | 0.24 | $1.71 billion | $7.23 | 37.08 |
| Privia Health Group | $2.12 billion | 1.44 | $22.92 million | $0.21 | 114.00 |
Cardinal Health has higher revenue and earnings than Privia Health Group. Cardinal Health is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Cardinal Health and Privia Health Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardinal Health | 0 | 3 | 16 | 0 | 2.84 |
| Privia Health Group | 0 | 3 | 11 | 0 | 2.79 |
Cardinal Health presently has a consensus target price of $271.31, suggesting a potential upside of 1.20%. Privia Health Group has a consensus target price of $31.00, suggesting a potential upside of 29.49%. Given Privia Health Group’s higher probable upside, analysts clearly believe Privia Health Group is more favorable than Cardinal Health.
Risk & Volatility
Cardinal Health has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Privia Health Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Summary
Privia Health Group beats Cardinal Health on 8 of the 14 factors compared between the two stocks.
About Cardinal Health
Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
About Privia Health Group
Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.
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