Universal Health Services (NYSE:UHS) and NeoGenomics (NASDAQ:NEO) Head to Head Contrast

Universal Health Services (NYSE:UHS) and NeoGenomics (NASDAQ:NEO) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Profitability

This table compares Universal Health Services and NeoGenomics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Services	7.96%	18.39%	8.61%
NeoGenomics	-4.10%	-0.99%	-0.59%

Analyst Ratings

This is a summary of current ratings and price targets for Universal Health Services and NeoGenomics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Services	1	11	6	0	2.28
NeoGenomics	1	3	8	0	2.58

Universal Health Services presently has a consensus price target of $202.60, indicating a potential upside of 4.00%. NeoGenomics has a consensus price target of $20.88, indicating a potential upside of 29.09%. Given NeoGenomics’ stronger consensus rating and higher probable upside, analysts plainly believe NeoGenomics is more favorable than Universal Health Services.

Risk & Volatility

Universal Health Services has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, NeoGenomics has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Insider and Institutional Ownership

86.0% of Universal Health Services shares are held by institutional investors. Comparatively, 98.5% of NeoGenomics shares are held by institutional investors. 17.1% of Universal Health Services shares are held by company insiders. Comparatively, 1.1% of NeoGenomics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Universal Health Services and NeoGenomics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Services	$17.36 billion	0.66	$1.49 billion	$23.91	8.15
NeoGenomics	$727.33 million	2.88	-$108.03 million	($0.25)	-64.68

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

Summary

Universal Health Services beats NeoGenomics on 8 of the 14 factors compared between the two stocks.

About Universal Health Services

Universal Health Services, Inc. (NYSE: UHS) is a healthcare company that owns and operates hospitals and other healthcare facilities. Its services span acute care, behavioral healthcare and outpatient treatment. The company’s facilities provide services such as inpatient and outpatient medical care, emergency services, psychiatric treatment, substance-use-disorder care and rehabilitation. UHS serves communities across the United States and also has operations in the United Kingdom and Puerto Rico.

About NeoGenomics

NeoGenomics is a cancer-focused diagnostics company that provides laboratory testing and related services to physicians, hospitals, pharmaceutical companies and other healthcare organizations. Its clinical testing helps support the diagnosis and treatment of cancer. The company offers a range of oncology tests, including molecular, cytogenetic, pathology and flow cytometry services. Its capabilities also include next-generation sequencing and liquid biopsy testing, which can help clinicians assess tumor characteristics and inform treatment decisions.