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LifePoint Health (NASDAQ: LPNT) and Quorum Health (NYSE:QHC) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

LifePoint Health has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Quorum Health has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Profitability

This table compares LifePoint Health and Quorum Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LifePoint Health 0.48% 6.56% 2.39%
Quorum Health -9.14% -46.79% -2.65%

Earnings & Valuation

This table compares LifePoint Health and Quorum Health’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LifePoint Health $7.26 billion 0.29 $102.40 million $3.63 15.14
Quorum Health $2.07 billion 0.08 -$114.19 million ($1.30) -4.09

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

Insider & Institutional Ownership

85.3% of Quorum Health shares are owned by institutional investors. 8.8% of LifePoint Health shares are owned by insiders. Comparatively, 4.7% of Quorum Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for LifePoint Health and Quorum Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LifePoint Health 1 10 6 0 2.29
Quorum Health 0 4 0 0 2.00

LifePoint Health currently has a consensus target price of $53.57, indicating a potential downside of 2.51%. Quorum Health has a consensus target price of $3.88, indicating a potential downside of 27.16%. Given LifePoint Health’s stronger consensus rating and higher possible upside, equities research analysts plainly believe LifePoint Health is more favorable than Quorum Health.

Summary

LifePoint Health beats Quorum Health on 12 of the 14 factors compared between the two stocks.

About LifePoint Health

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers, and post-acute facilities in the United States. Its hospitals provide a range of medical and surgical services, such as general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation, and pediatric, as well as specialized services, including open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. The company’s hospitals also offer outpatient services comprising same-day surgery, laboratory, X-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. In addition, it owns and operates schools of nursing and other allied health professions. As of December 31, 2017, the company operated 71 hospital campuses with a total of 9,254 licensed beds in 22 states. The company was formerly known as LifePoint Hospitals, Inc. and changed its name to LifePoint Health, Inc. in May 2015. LifePoint Health, Inc. was founded in 1997 and is based in Brentwood, Tennessee.

About Quorum Health

Quorum Health Corporation provides hospital and outpatient healthcare services in the United States. Its hospital and outpatient healthcare services include general and acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetric, diagnostic, psychiatric, and rehabilitation services. Quorum Health Corporation offers its healthcare services through its hospitals and affiliated facilities, including urgent care centers, diagnostic and imaging centers, physician clinics, and surgery centers. The company, through its subsidiary, Quorum Health Resources, LLC, provides hospital management advisory and healthcare consulting services to non-affiliated hospitals. As of January 5, 2018, it owned or leased 31 hospitals with an aggregate of approximately 3,000 licensed beds. The company was incorporated in 2015 and is headquartered in Brentwood, Tennessee.

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