Astrana Health (NASDAQ:ASTH) & Tenet Healthcare (NYSE:THC) Critical Analysis

Tenet Healthcare (NYSE:THC) and Astrana Health (NASDAQ:ASTH) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility and Risk

Tenet Healthcare has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Astrana Health has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tenet Healthcare and Astrana Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Healthcare	$21.31 billion	0.96	$1.41 billion	$25.93	9.80
Astrana Health	$3.18 billion	0.61	$22.49 million	$0.82	42.57

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

Profitability

This table compares Tenet Healthcare and Astrana Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenet Healthcare	10.27%	26.76%	5.55%
Astrana Health	1.05%	10.30%	3.67%

Analyst Ratings

This is a summary of current ratings and price targets for Tenet Healthcare and Astrana Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Healthcare	0	3	18	0	2.86
Astrana Health	0	2	8	0	2.80

Tenet Healthcare presently has a consensus target price of $277.25, suggesting a potential upside of 9.14%. Astrana Health has a consensus target price of $49.88, suggesting a potential upside of 42.87%. Given Astrana Health’s higher possible upside, analysts plainly believe Astrana Health is more favorable than Tenet Healthcare.

Insider and Institutional Ownership

95.4% of Tenet Healthcare shares are held by institutional investors. Comparatively, 52.8% of Astrana Health shares are held by institutional investors. 1.0% of Tenet Healthcare shares are held by insiders. Comparatively, 20.3% of Astrana Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Tenet Healthcare beats Astrana Health on 11 of the 14 factors compared between the two stocks.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.

About Astrana Health

Astrana Health, Inc., Inc., a physician-centric technology-powered healthcare management company, provides medical care services in the United States. It operates through three segments: Care Partners, Care Delivery, and Care Enablement. The company is leveraging its proprietary population health management and healthcare delivery platform, operates an integrated, value-based healthcare model which empowers the providers in its network to deliver care to its patients. It offers care coordination services to patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups, and health plans. The company's physician network consists of primary care physicians, specialist physicians and extenders, and hospitalists. It serves patients, primarily covered by private or public insurance, such as Medicare, Medicaid, and health maintenance organization plans; and non-insured patients. The company was formerly known as Apollo Medical Holdings, Inc. and changed its name to Astrana Health, Inc. in February 2024. Astrana Health, Inc. was incorporated in 1985 and is headquartered in Alhambra, California.