Clover Health Investments (NASDAQ:CLOV – Get Free Report) and Tenet Healthcare (NYSE:THC – Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings for Clover Health Investments and Tenet Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 1 | 3 | 2 | 0 | 2.17 |
| Tenet Healthcare | 0 | 1 | 18 | 1 | 3.00 |
Clover Health Investments currently has a consensus target price of $4.75, indicating a potential upside of 4.63%. Tenet Healthcare has a consensus target price of $275.53, indicating a potential upside of 5.27%. Given Tenet Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Tenet Healthcare is more favorable than Clover Health Investments.
Risk and Volatility
Profitability
This table compares Clover Health Investments and Tenet Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
| Tenet Healthcare | 10.27% | 26.76% | 5.55% |
Insider and Institutional Ownership
19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 95.4% of Tenet Healthcare shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by insiders. Comparatively, 1.0% of Tenet Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Clover Health Investments and Tenet Healthcare”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $2.48 billion | 0.97 | -$85.55 million | ($0.05) | -90.80 |
| Tenet Healthcare | $22.64 billion | 0.93 | $1.41 billion | $25.93 | 10.09 |
Tenet Healthcare has higher revenue and earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Tenet Healthcare, indicating that it is currently the more affordable of the two stocks.
Summary
Tenet Healthcare beats Clover Health Investments on 12 of the 15 factors compared between the two stocks.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
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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