Head to Head Comparison: Privia Health Group (NASDAQ:PRVA) and Community Health Systems (NYSE:CYH)

Community Health Systems (NYSE:CYH) and Privia Health Group (NASDAQ:PRVA) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Community Health Systems and Privia Health Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Health Systems	$12.48 billion	0.03	$509.00 million	$1.85	1.62
Privia Health Group	$2.12 billion	1.30	$22.92 million	$0.21	103.10

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

Risk and Volatility

Community Health Systems has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Privia Health Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Community Health Systems and Privia Health Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Health Systems	2	5	1	0	1.88
Privia Health Group	0	3	11	0	2.79

Community Health Systems presently has a consensus target price of $2.96, suggesting a potential downside of 1.22%. Privia Health Group has a consensus target price of $31.00, suggesting a potential upside of 43.19%. Given Privia Health Group’s stronger consensus rating and higher possible upside, analysts plainly believe Privia Health Group is more favorable than Community Health Systems.

Institutional & Insider Ownership

85.0% of Community Health Systems shares are held by institutional investors. Comparatively, 94.5% of Privia Health Group shares are held by institutional investors. 11.1% of Community Health Systems shares are held by insiders. Comparatively, 5.7% of Privia Health Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Community Health Systems and Privia Health Group’s 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%
Privia Health Group	1.19%	3.52%	2.00%

Summary

Privia Health Group beats Community Health Systems on 8 of the 14 factors compared between the two stocks.

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.

About Privia Health Group

Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.