Head to Head Contrast: AdaptHealth (NASDAQ:AHCO) and Universal Health Services (NYSE:UHS)

Universal Health Services (NYSE:UHS) and AdaptHealth (NASDAQ:AHCO) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

86.0% of Universal Health Services shares are owned by institutional investors. Comparatively, 82.7% of AdaptHealth shares are owned by institutional investors. 17.1% of Universal Health Services shares are owned by insiders. Comparatively, 1.9% of AdaptHealth shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Universal Health Services and AdaptHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Services	7.96%	18.39%	8.61%
AdaptHealth	-7.07%	3.36%	1.16%

Earnings & Valuation

This table compares Universal Health Services and AdaptHealth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Services	$17.36 billion	0.66	$1.49 billion	$23.91	8.15
AdaptHealth	$3.24 billion	0.31	-$70.79 million	($3.00)	-2.44

Universal Health Services has higher revenue and earnings than AdaptHealth. AdaptHealth is trading at a lower price-to-earnings ratio than Universal Health Services, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Universal Health Services has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, AdaptHealth has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Universal Health Services and AdaptHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Services	1	11	6	0	2.28
AdaptHealth	1	1	7	0	2.67

Universal Health Services currently has a consensus price target of $201.00, suggesting a potential upside of 3.12%. AdaptHealth has a consensus price target of $9.43, suggesting a potential upside of 28.63%. Given AdaptHealth’s stronger consensus rating and higher probable upside, analysts plainly believe AdaptHealth is more favorable than Universal Health Services.

Summary

Universal Health Services beats AdaptHealth on 10 of the 14 factors compared between the two stocks.

About Universal Health Services

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric services, pharmacy services, and/or behavioral health services. It also provides commercial health insurance services; and various management services, which include central purchasing, information, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services. Universal Health Services, Inc. founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

About AdaptHealth

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.