Financial Contrast: Clover Health Investments (NASDAQ:CLOV) & Tenet Healthcare (NYSE:THC)

Tenet Healthcare (NYSE:THC) and Clover Health Investments (NASDAQ:CLOV) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

95.4% of Tenet Healthcare shares are held by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are held by institutional investors. 1.0% of Tenet Healthcare shares are held by insiders. Comparatively, 23.5% of Clover Health Investments shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tenet Healthcare and Clover Health Investments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Healthcare	0	2	18	1	2.95
Clover Health Investments	1	3	2	0	2.17

Tenet Healthcare presently has a consensus price target of $277.25, suggesting a potential upside of 11.03%. Clover Health Investments has a consensus price target of $4.75, suggesting a potential upside of 5.32%. Given Tenet Healthcare’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tenet Healthcare is more favorable than Clover Health Investments.

Profitability

This table compares Tenet Healthcare and Clover Health Investments’ 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%
Clover Health Investments	-0.74%	-4.20%	-2.28%

Risk and Volatility

Tenet Healthcare has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.

Valuation & Earnings

This table compares Tenet Healthcare and Clover Health Investments”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Healthcare	$21.31 billion	0.94	$1.41 billion	$25.93	9.63
Clover Health Investments	$1.92 billion	1.24	-$85.55 million	($0.05)	-90.20

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

Summary

Tenet Healthcare beats Clover Health Investments on 12 of the 15 factors compared between the two stocks.

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 Clover Health Investments

Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.