Financial Survey: Surgery Partners (NASDAQ:SGRY) & Oncology Institute (NASDAQ:TOI)

Surgery Partners (NASDAQ:SGRY) and Oncology Institute (NASDAQ:TOI) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

36.9% of Oncology Institute shares are held by institutional investors. 2.7% of Surgery Partners shares are held by company insiders. Comparatively, 8.5% of Oncology Institute shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Surgery Partners and Oncology Institute, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	1	2	7	0	2.60
Oncology Institute	1	0	3	1	2.80

Surgery Partners presently has a consensus target price of $27.11, indicating a potential upside of 70.51%. Oncology Institute has a consensus target price of $6.50, indicating a potential upside of 94.03%. Given Oncology Institute’s stronger consensus rating and higher probable upside, analysts plainly believe Oncology Institute is more favorable than Surgery Partners.

Profitability

This table compares Surgery Partners and Oncology Institute’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surgery Partners	-5.21%	2.41%	0.96%
Oncology Institute	-13.21%	-1,527.21%	-35.30%

Volatility & Risk

Surgery Partners has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Oncology Institute has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Earnings and Valuation

This table compares Surgery Partners and Oncology Institute”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.11 billion	0.66	-$168.10 million	($1.36)	-11.69
Oncology Institute	$393.41 million	0.84	-$64.66 million	($0.64)	-5.23

Oncology Institute has lower revenue, but higher earnings than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than Oncology Institute, indicating that it is currently the more affordable of the two stocks.

Summary

Oncology Institute beats Surgery Partners on 9 of the 15 factors compared between the two stocks.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

About Oncology Institute

The Oncology Institute, Inc., an oncology company, provides various medical oncology services in the United States. The company operates through three segments: Dispensary, Patient Services, and Clinical Trials & Other. It offers physician services, in-house infusion and dispensary, clinical trial, radiation, outpatient blood product transfusion, and patient support services, as well as educational seminars, support groups, and counseling services. The company also provides managing clinical trials, palliative care programs, stem cell transplants services, and other care delivery models associated with non-community-based academic and tertiary care settings; and conducts clinical trials for a range of pharmaceutical and medical device companies. It serves adult and senior cancer patients. The company has a strategic collaboration with Healthly Forge to offer cancer care services to patients in Southern California. The Oncology Institute, Inc. was founded in 2007 and is headquartered in Cerritos, California.