Community Health Systems (CYH) versus Its Competitors Financial Review

Community Health Systems (NYSE:CYH) is one of 233 public companies in the “Healthcare Providers & Services” industry, but how does it contrast to its peers? We will compare Community Health Systems to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Insider & Institutional Ownership

85.0% of Community Health Systems shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 11.1% of Community Health Systems shares are owned by insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Community Health Systems has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Community Health Systems’ peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Profitability

This table compares Community Health Systems and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Health Systems	2.10%	-6.66%	0.62%
Community Health Systems Competitors	-7.83%	-141.62%	-1.53%

Analyst Recommendations

This is a summary of current ratings and price targets for Community Health Systems and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Health Systems	3	4	1	0	1.75
Community Health Systems Competitors	1837	7678	13205	813	2.55

Community Health Systems currently has a consensus price target of $2.96, suggesting a potential upside of 11.85%. As a group, “Healthcare Providers & Services” companies have a potential upside of 11.77%. Given Community Health Systems’ higher possible upside, equities analysts plainly believe Community Health Systems is more favorable than its peers.

Valuation & Earnings

This table compares Community Health Systems and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Community Health Systems	$12.48 billion	$509.00 million	1.43
Community Health Systems Competitors	$19.08 billion	$288.48 million	6.91

Community Health Systems’ peers have higher revenue, but lower earnings than Community Health Systems. Community Health Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Community Health Systems beats its peers on 7 of the 13 factors compared.

About Community Health Systems

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. The company was incorporated in 1996 and is headquartered in Franklin, Tennessee.