Critical Survey: Concentra Group Holdings Parent (NYSE:CON) and AdaptHealth (NASDAQ:AHCO)

Concentra Group Holdings Parent (NYSE:CON) and AdaptHealth (NASDAQ:AHCO) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

Concentra Group Holdings Parent has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, AdaptHealth has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Concentra Group Holdings Parent and AdaptHealth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentra Group Holdings Parent	0	0	8	2	3.20
AdaptHealth	1	1	7	0	2.67

Concentra Group Holdings Parent currently has a consensus price target of $41.29, indicating a potential downside of 1.80%. AdaptHealth has a consensus price target of $9.43, indicating a potential upside of 28.63%. Given AdaptHealth’s higher possible upside, analysts plainly believe AdaptHealth is more favorable than Concentra Group Holdings Parent.

Earnings and Valuation

This table compares Concentra Group Holdings Parent and AdaptHealth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentra Group Holdings Parent	$2.16 billion	2.48	$166.41 million	$1.55	27.12
AdaptHealth	$3.24 billion	0.31	-$70.79 million	($3.00)	-2.44

Concentra Group Holdings Parent has higher earnings, but lower revenue than AdaptHealth. AdaptHealth is trading at a lower price-to-earnings ratio than Concentra Group Holdings Parent, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

82.7% of AdaptHealth shares are held by institutional investors. 8.1% of Concentra Group Holdings Parent shares are held by company insiders. Comparatively, 1.9% of AdaptHealth shares are held 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.

Profitability

This table compares Concentra Group Holdings Parent and AdaptHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concentra Group Holdings Parent	8.69%	47.81%	7.04%
AdaptHealth	-7.07%	3.36%	1.16%

Summary

Concentra Group Holdings Parent beats AdaptHealth on 11 of the 15 factors compared between the two stocks.

About Concentra Group Holdings Parent

Concentra Group Holdings Parent, Inc. provides occupational health services in the United States. The company offers occupational and consumer health services, including workers’ compensation injury care, urgent care, clinical testing, preventative care, and employer services, as well as wellness programs through occupational health centers and onsite clinics. It also provides Concentra Telemed, a telemedicine solution for the treatment of work-related injuries and illnesses, and employer services; pharmacy solution under the Concentra Pharmacy name; and Concentra Medical Compliance Administration, a third-party administrator that helps to manage abuse testing programs for employers with regulated or non-regulated workforces. The company was founded in 1979 and is based in Mechanicsburg, Pennsylvania. Concentra Group Holdings Parent, Inc. is a subsidiary of Select Medical Corporation.

About AdaptHealth

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.