Head to Head Analysis: Surgery Partners (NASDAQ:SGRY) & P3 Health Partners (NASDAQ:PIII)

Surgery Partners (NASDAQ:SGRY) and P3 Health Partners (NASDAQ:PIII) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

This table compares Surgery Partners and P3 Health Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surgery Partners	-2.63%	0.88%	0.34%
P3 Health Partners	-6.55%	N/A	-16.40%

Risk & Volatility

Surgery Partners has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Insider & Institutional Ownership

7.7% of P3 Health Partners shares are owned by institutional investors. 2.0% of Surgery Partners shares are owned by company insiders. Comparatively, 10.9% of P3 Health Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Surgery Partners and P3 Health Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	1	3	7	0	2.55
P3 Health Partners	1	2	1	0	2.00

Surgery Partners presently has a consensus target price of $19.00, suggesting a potential upside of 27.98%. P3 Health Partners has a consensus target price of $17.00, suggesting a potential upside of 301.89%. Given P3 Health Partners’ higher probable upside, analysts clearly believe P3 Health Partners is more favorable than Surgery Partners.

Earnings and Valuation

This table compares Surgery Partners and P3 Health Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.37 billion	0.58	-$77.90 million	($0.70)	-21.21
P3 Health Partners	$1.46 billion	0.02	-$147.95 million	($33.00)	-0.13

Surgery Partners has higher revenue and earnings than P3 Health Partners. Surgery Partners is trading at a lower price-to-earnings ratio than P3 Health Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Surgery Partners beats P3 Health Partners on 10 of the 14 factors compared between the two stocks.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

About P3 Health Partners

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.