Community Health Systems (NYSE: CYH) and The Joint Corp. (NASDAQ:JYNT) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
94.7% of Community Health Systems shares are held by institutional investors. Comparatively, 47.0% of The Joint Corp. shares are held by institutional investors. 4.7% of Community Health Systems shares are held by company insiders. Comparatively, 6.1% of The Joint Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Community Health Systems has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, The Joint Corp. has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Community Health Systems and The Joint Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Health Systems||4||12||1||0||1.82|
|The Joint Corp.||0||0||4||0||3.00|
Community Health Systems currently has a consensus price target of $7.52, indicating a potential upside of 1.61%. The Joint Corp. has a consensus price target of $6.15, indicating a potential upside of 24.49%. Given The Joint Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe The Joint Corp. is more favorable than Community Health Systems.
Earnings & Valuation
This table compares Community Health Systems and The Joint Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Community Health Systems||$17.48 billion||0.05||$1.78 billion||($5.71)||-1.30|
|The Joint Corp.||$22.97 million||2.83||-$4.53 million||($0.87)||-5.68|
Community Health Systems has higher revenue and earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than Community Health Systems, indicating that it is currently the more affordable of the two stocks.
This table compares Community Health Systems and The Joint Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Health Systems||-3.63%||0.07%||0.01%|
|The Joint Corp.||-48.08%||-103.25%||-42.06%|
Community Health Systems beats The Joint Corp. on 7 of the 13 factors compared between the two stocks.
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.
About The Joint Corp.
The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.
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