Tenet Healthcare (NYSE:THC) & RadNet (NASDAQ:RDNT) Head-To-Head Review

Tenet Healthcare (NYSE:THC) and RadNet (NASDAQ:RDNT) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

Tenet Healthcare has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Institutional and Insider Ownership

95.4% of Tenet Healthcare shares are held by institutional investors. Comparatively, 77.9% of RadNet shares are held by institutional investors. 1.0% of Tenet Healthcare shares are held by company insiders. Comparatively, 5.6% of RadNet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Tenet Healthcare and RadNet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenet Healthcare	10.27%	26.76%	5.55%
RadNet	-0.66%	2.77%	0.97%

Earnings & Valuation

This table compares Tenet Healthcare and RadNet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Healthcare	$22.64 billion	0.96	$1.41 billion	$25.93	9.76
RadNet	$2.04 billion	2.46	-$18.65 million	($0.18)	-354.87

Tenet Healthcare has higher revenue and earnings than RadNet. RadNet is trading at a lower price-to-earnings ratio than Tenet Healthcare, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Tenet Healthcare and RadNet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Healthcare	0	3	17	0	2.85
RadNet	2	0	6	2	2.80

Tenet Healthcare currently has a consensus price target of $268.50, suggesting a potential upside of 6.09%. RadNet has a consensus price target of $87.43, suggesting a potential upside of 36.87%. Given RadNet’s higher probable upside, analysts plainly believe RadNet is more favorable than Tenet Healthcare.

Summary

Tenet Healthcare beats RadNet on 10 of the 15 factors compared between the two stocks.

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.

About RadNet

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.