Financial Analysis: Concentra Group Holdings Parent (NYSE:CON) vs. Tenet Healthcare (NYSE:THC)

Tenet Healthcare (NYSE:THC) and Concentra Group Holdings Parent (NYSE:CON) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Profitability

This table compares Tenet Healthcare and Concentra Group Holdings Parent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenet Healthcare	10.27%	26.76%	5.55%
Concentra Group Holdings Parent	8.69%	47.81%	7.04%

Institutional and Insider Ownership

95.4% of Tenet Healthcare shares are held by institutional investors. 1.0% of Tenet Healthcare shares are held by insiders. Comparatively, 8.1% of Concentra Group Holdings Parent shares are held 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 and Valuation

This table compares Tenet Healthcare and Concentra Group Holdings Parent”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Healthcare	$21.31 billion	0.97	$1.41 billion	$25.93	9.90
Concentra Group Holdings Parent	$2.29 billion	1.94	$166.41 million	$1.55	22.41

Tenet Healthcare has higher revenue and earnings than Concentra Group Holdings Parent. Tenet Healthcare is trading at a lower price-to-earnings ratio than Concentra Group Holdings Parent, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Tenet Healthcare has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Concentra Group Holdings Parent has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Tenet Healthcare and Concentra Group Holdings Parent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Healthcare	0	2	18	1	2.95
Concentra Group Holdings Parent	0	0	7	1	3.12

Tenet Healthcare presently has a consensus target price of $277.25, indicating a potential upside of 7.97%. Concentra Group Holdings Parent has a consensus target price of $39.40, indicating a potential upside of 13.41%. Given Concentra Group Holdings Parent’s stronger consensus rating and higher probable upside, analysts plainly believe Concentra Group Holdings Parent is more favorable than Tenet Healthcare.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.

About Concentra Group Holdings Parent

Concentra Group Holdings Parent, Inc. provides occupational health services in the United States. The company offers occupational and consumer health services, including workers’ compensation injury care, urgent care, clinical testing, preventative care, and employer services, as well as wellness programs through occupational health centers and onsite clinics. It also provides Concentra Telemed, a telemedicine solution for the treatment of work-related injuries and illnesses, and employer services; pharmacy solution under the Concentra Pharmacy name; and Concentra Medical Compliance Administration, a third-party administrator that helps to manage abuse testing programs for employers with regulated or non-regulated workforces. The company was founded in 1979 and is based in Mechanicsburg, Pennsylvania. Concentra Group Holdings Parent, Inc. is a subsidiary of Select Medical Corporation.