Reviewing Tenet Healthcare (NYSE:THC) and Elevance Health (NYSE:ELV)

Tenet Healthcare (NYSE:THC) and Elevance Health (NYSE:ELV) are both large-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Tenet Healthcare and Elevance Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Healthcare	0	1	19	1	3.00
Elevance Health	0	8	15	0	2.65

Tenet Healthcare presently has a consensus target price of $273.00, indicating a potential upside of 5.26%. Elevance Health has a consensus target price of $440.90, indicating a potential upside of 9.67%. Given Elevance Health’s higher probable upside, analysts clearly believe Elevance Health is more favorable than Tenet Healthcare.

Insider and Institutional Ownership

95.4% of Tenet Healthcare shares are owned by institutional investors. Comparatively, 89.2% of Elevance Health shares are owned by institutional investors. 1.0% of Tenet Healthcare shares are owned by company insiders. Comparatively, 0.3% of Elevance Health shares are owned 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.

Risk and Volatility

Tenet Healthcare has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Elevance Health has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Valuation & Earnings

This table compares Tenet Healthcare and Elevance Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Healthcare	$22.64 billion	0.92	$1.41 billion	$25.93	10.00
Elevance Health	$199.12 billion	0.44	$5.66 billion	$22.50	17.87

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

Profitability

This table compares Tenet Healthcare and Elevance Health’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%
Elevance Health	2.47%	14.64%	5.22%

Summary

Tenet Healthcare beats Elevance Health on 11 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 Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.