Analyzing Tenet Healthcare (NYSE:THC) and Getinge (OTCMKTS:GNGBY)

Getinge (OTCMKTS:GNGBY) and Tenet Healthcare (NYSE:THC) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Getinge 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
Getinge	$3.57 billion	1.95	$230.87 million	$1.05	24.33
Tenet Healthcare	$21.31 billion	1.00	$1.41 billion	$25.93	10.21

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

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getinge	7.81%	11.12%	5.88%
Tenet Healthcare	10.27%	26.76%	5.55%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Getinge and Tenet Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	2	0	1	2.67
Tenet Healthcare	0	1	19	1	3.00

Tenet Healthcare has a consensus price target of $273.00, indicating a potential upside of 3.11%. Given Tenet Healthcare’s stronger consensus rating and higher possible upside, analysts clearly believe Tenet Healthcare is more favorable than Getinge.

Risk and Volatility

Getinge has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Summary

Tenet Healthcare beats Getinge on 11 of the 14 factors compared between the two stocks.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

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.