Elevance Health (NYSE:ELV – Get Free Report) and Tenet Healthcare (NYSE:THC – Get Free Report) are both large-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
Earnings & Valuation
This table compares Elevance Health and Tenet Healthcare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elevance Health | $199.12 billion | 0.45 | $5.66 billion | $22.50 | 18.17 |
| Tenet Healthcare | $21.31 billion | 1.00 | $1.41 billion | $25.93 | 10.21 |
Institutional and Insider Ownership
89.2% of Elevance Health shares are owned by institutional investors. Comparatively, 95.4% of Tenet Healthcare shares are owned by institutional investors. 0.3% of Elevance Health shares are owned by insiders. Comparatively, 1.0% of Tenet Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Elevance Health and Tenet Healthcare, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elevance Health | 0 | 8 | 15 | 0 | 2.65 |
| Tenet Healthcare | 0 | 1 | 19 | 1 | 3.00 |
Elevance Health currently has a consensus price target of $440.90, suggesting a potential upside of 7.82%. Tenet Healthcare has a consensus price target of $273.00, suggesting a potential upside of 3.14%. Given Elevance Health’s higher possible upside, research analysts clearly believe Elevance Health is more favorable than Tenet Healthcare.
Risk & Volatility
Elevance Health has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
Profitability
This table compares Elevance Health and Tenet Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elevance Health | 2.47% | 14.64% | 5.22% |
| Tenet Healthcare | 10.27% | 26.76% | 5.55% |
Summary
Tenet Healthcare beats Elevance Health on 11 of the 15 factors compared between the two stocks.
About Elevance Health
Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.
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.
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