Analyzing Progyny (NASDAQ:PGNY) & Universal Health Services (NYSE:UHS)

Universal Health Services (NYSE:UHS) and Progyny (NASDAQ:PGNY) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Volatility & Risk

Universal Health Services has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Progyny has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Universal Health Services and Progyny”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Services	$18.11 billion	0.56	$1.49 billion	$24.55	7.07
Progyny	$1.29 billion	1.66	$58.52 million	$0.92	30.27

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

Profitability

This table compares Universal Health Services and Progyny’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Services	8.42%	19.39%	9.21%
Progyny	6.00%	15.98%	10.65%

Insider & Institutional Ownership

86.1% of Universal Health Services shares are owned by institutional investors. Comparatively, 94.9% of Progyny shares are owned by institutional investors. 17.1% of Universal Health Services shares are owned by insiders. Comparatively, 9.9% of Progyny shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Universal Health Services and Progyny, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Services	0	12	5	0	2.29
Progyny	0	3	9	1	2.85

Universal Health Services presently has a consensus target price of $204.93, indicating a potential upside of 18.12%. Progyny has a consensus target price of $34.36, indicating a potential upside of 23.39%. Given Progyny’s stronger consensus rating and higher probable upside, analysts clearly believe Progyny is more favorable than Universal Health Services.

Summary

Progyny beats Universal Health Services on 8 of the 15 factors compared between the two stocks.

About Universal Health Services

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric services, pharmacy services, and/or behavioral health services. It also provides commercial health insurance services; and various management services, which include central purchasing, information, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services. Universal Health Services, Inc. founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.