The Providence Service Corporation (NASDAQ: PRSC) and Envision Healthcare Corp (NASDAQ:AMSG) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitabiliy, dividends and institutional ownership.
Volatility and Risk
The Providence Service Corporation has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Envision Healthcare Corp has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
This is a breakdown of recent recommendations for The Providence Service Corporation and Envision Healthcare Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Providence Service Corporation||0||1||0||0||2.00|
|Envision Healthcare Corp||0||1||6||0||2.86|
Envision Healthcare Corp has a consensus price target of $85.60, suggesting a potential upside of 26.35%. Given Envision Healthcare Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Envision Healthcare Corp is more favorable than The Providence Service Corporation.
Earnings & Valuation
This table compares The Providence Service Corporation and Envision Healthcare Corp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Providence Service Corporation||$1.60 billion||0.39||$71.84 million||$4.68||10.01|
|Envision Healthcare Corp||N/A||N/A||N/A||$3.26||20.78|
The Providence Service Corporation has higher revenue and earnings than Envision Healthcare Corp. The Providence Service Corporation is trading at a lower price-to-earnings ratio than Envision Healthcare Corp, indicating that it is currently the more affordable of the two stocks.
This table compares The Providence Service Corporation and Envision Healthcare Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Providence Service Corporation||4.05%||9.43%||2.92%|
|Envision Healthcare Corp||6.06%||8.05%||3.21%|
Institutional and Insider Ownership
93.1% of The Providence Service Corporation shares are owned by institutional investors. Comparatively, 98.7% of Envision Healthcare Corp shares are owned by institutional investors. 14.4% of The Providence Service Corporation shares are owned by insiders. Comparatively, 2.3% of Envision Healthcare Corp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Envision Healthcare Corp beats The Providence Service Corporation on 6 of the 11 factors compared between the two stocks.
About The Providence Service Corporation
The Providence Service Corporation (Providence) is a holding company. The Company, through its subsidiaries, is engaged in the provision of healthcare and workforce development services for public and private sector entities. The Company’s segments include Non-Emergency Transportation Services (NET Services), Workforce Development Services (WD Services) and Matrix Investment. NET Services segment includes nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations. WD Services segment is a global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs. Matrix Investment segment includes minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments (CHAs), to members of managed care organizations, accounted for as an equity method investment.
About Envision Healthcare Corp
Envision Healthcare Corporation is a provider of healthcare services. The Company offers a range clinical solutions, including physician-led services, medical transportation, ambulatory services and post-acute services. The Company operates through three segments: physician services, medical transportation and ambulatory services. The physician services segment includes the Company’s hospital-based and non-hospital-based physician services business. The medical transportation segment includes the Company’s community-based medical transportation services, including emergency 911, non-emergency, managed transportation, air ambulance and disaster response services. The ambulatory services segment includes the Company’s ambulatory surgery business, which acquires, develops, owns and operates ambulatory surgery centers (ASCs) and surgical hospitals in partnership with physicians and health systems.
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