Astrana Health (NASDAQ:ASTH – Get Free Report) and Tenet Healthcare (NYSE:THC – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Astrana Health has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Insider & Institutional Ownership
52.8% of Astrana Health shares are held by institutional investors. Comparatively, 95.4% of Tenet Healthcare shares are held by institutional investors. 20.3% of Astrana Health shares are held by insiders. Comparatively, 1.0% of Tenet Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astrana Health | 0 | 2 | 8 | 0 | 2.80 |
| Tenet Healthcare | 0 | 3 | 18 | 0 | 2.86 |
Astrana Health presently has a consensus target price of $49.88, indicating a potential upside of 42.87%. Tenet Healthcare has a consensus target price of $277.25, indicating a potential upside of 9.14%. Given Astrana Health’s higher probable upside, analysts clearly believe Astrana Health is more favorable than Tenet Healthcare.
Valuation & Earnings
This table compares Astrana 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 | |
| Astrana Health | $3.18 billion | 0.61 | $22.49 million | $0.82 | 42.57 |
| Tenet Healthcare | $21.31 billion | 0.96 | $1.41 billion | $25.93 | 9.80 |
Tenet Healthcare has higher revenue and earnings than Astrana Health. Tenet Healthcare is trading at a lower price-to-earnings ratio than Astrana Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Astrana Health and Tenet Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astrana Health | 1.05% | 10.30% | 3.67% |
| Tenet Healthcare | 10.27% | 26.76% | 5.55% |
Summary
Tenet Healthcare beats Astrana Health on 11 of the 14 factors compared between the two stocks.
About Astrana Health
Astrana Health, Inc., Inc., a physician-centric technology-powered healthcare management company, provides medical care services in the United States. It operates through three segments: Care Partners, Care Delivery, and Care Enablement. The company is leveraging its proprietary population health management and healthcare delivery platform, operates an integrated, value-based healthcare model which empowers the providers in its network to deliver care to its patients. It offers care coordination services to patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups, and health plans. The company's physician network consists of primary care physicians, specialist physicians and extenders, and hospitalists. It serves patients, primarily covered by private or public insurance, such as Medicare, Medicaid, and health maintenance organization plans; and non-insured patients. The company was formerly known as Apollo Medical Holdings, Inc. and changed its name to Astrana Health, Inc. in February 2024. Astrana Health, Inc. was incorporated in 1985 and is headquartered in Alhambra, California.
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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