HMS (NASDAQ: HMSY) and Community Health Systems (NYSE:CYH) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
This is a summary of recent ratings and price targets for HMS and Community Health Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Health Systems||3||10||0||0||1.77|
HMS currently has a consensus price target of $20.21, indicating a potential upside of 24.93%. Community Health Systems has a consensus price target of $5.79, indicating a potential upside of 38.23%. Given Community Health Systems’ higher possible upside, analysts plainly believe Community Health Systems is more favorable than HMS.
This table compares HMS and Community Health Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Health Systems||-3.97%||-3.10%||-0.22%|
Earnings and Valuation
This table compares HMS and Community Health Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|HMS||$496.01 million||2.74||$37.63 million||$0.29||55.79|
|Community Health Systems||$18.44 billion||0.03||-$1.72 billion||($5.82)||-0.72|
HMS has higher revenue, but lower earnings than Community Health Systems. Community Health Systems is trading at a lower price-to-earnings ratio than HMS, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
HMS has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Institutional and Insider Ownership
96.2% of HMS shares are held by institutional investors. Comparatively, 94.7% of Community Health Systems shares are held by institutional investors. 3.2% of HMS shares are held by insiders. Comparatively, 4.7% of Community Health Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
HMS beats Community Health Systems on 10 of the 14 factors compared between the two stocks.
HMS Holdings Corp. is a holding company. The Company, through its subsidiaries, operates in the United States healthcare insurance benefit cost containment marketplace. It provides coordination of benefits services to government, and private healthcare payers and sponsors. Its payment integrity services ensure that healthcare claims billed are accurate and appropriate. It offers services to state Medicaid agencies, government health agencies and health plans, including Medicaid managed care, Medicare Advantage and group and individual health lines of business; government and private employers; and other healthcare payers and sponsors, including child support agencies. It serves approximately 45 state Medicaid programs and the District of Columbia, and government health agencies, including Centers for Medicare & Medicaid Services (CMS) and the Veterans Health Administration (VHA). It also provides services to approximately 250 health plans and supports their multiple lines of business.
About Community Health Systems
Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.
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