Analyzing Select Medical (NYSE:SEM) and United American Healthcare (OTCMKTS:UAHC)

Select Medical (NYSE:SEM) and United American Healthcare (OTCMKTS:UAHC) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Dividends

Select Medical pays an annual dividend of $0.25 per share and has a dividend yield of 1.9%. United American Healthcare pays an annual dividend of $0.08 per share and has a dividend yield of 470.6%. Select Medical pays out 23.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

89.5% of Select Medical shares are owned by institutional investors. 11.6% of Select Medical shares are owned by company insiders. Comparatively, 14.3% of United American Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Select Medical and United American Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Medical	0	1	3	0	2.75
United American Healthcare	0	0	0	0	0.00

Select Medical currently has a consensus price target of $20.25, indicating a potential upside of 57.16%. Given Select Medical’s stronger consensus rating and higher possible upside, research analysts clearly believe Select Medical is more favorable than United American Healthcare.

Profitability

This table compares Select Medical and United American Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Medical	2.37%	8.87%	2.93%
United American Healthcare	N/A	N/A	N/A

Earnings and Valuation

This table compares Select Medical and United American Healthcare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Medical	$5.19 billion	0.31	$214.04 million	$1.06	12.16
United American Healthcare	N/A	N/A	$240,000.00	N/A	N/A

Select Medical has higher revenue and earnings than United American Healthcare.

Volatility & Risk

Select Medical has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, United American Healthcare has a beta of -1.5, suggesting that its stock price is 250% less volatile than the S&P 500.

Summary

Select Medical beats United American Healthcare on 10 of the 13 factors compared between the two stocks.

About Select Medical

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra. The Critical Illness Recovery Hospital segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring prolonged recovery, renal disease, neurological events, and trauma. The Rehabilitation Hospital segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. The Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, pediatric and cancer rehabilitation, and athletic training services. The Concentra segment operates and provides occupational health centers, telemedicine platforms, onsite clinics, and contract services at employer worksites that deliver occupational health services, consumer health, physical therapy, and preventive care. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.

About United American Healthcare

United American Healthcare Corporation, through its subsidiaries, provides contract manufacturing services to the medical device industry. It also focuses on the production of natural rubber. The company was incorporated in 1983 and is based in Chicago, Illinois.