Reviewing Cencora (NYSE:COR) and Community Health Systems (NYSE:CYH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cencora	0.79%	125.45%	4.18%
Community Health Systems	2.10%	-6.66%	0.62%

Earnings & Valuation

This table compares Cencora and Community Health Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cencora	$321.33 billion	0.19	$1.55 billion	$13.46	23.48
Community Health Systems	$12.48 billion	0.03	$509.00 million	$1.85	1.48

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

Analyst Ratings

This is a summary of recent ratings and price targets for Cencora and Community Health Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cencora	0	3	13	0	2.81
Community Health Systems	2	5	1	0	1.88

Cencora presently has a consensus target price of $370.85, suggesting a potential upside of 17.33%. Community Health Systems has a consensus target price of $2.96, suggesting a potential upside of 7.77%. Given Cencora’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cencora is more favorable than Community Health Systems.

Volatility and Risk

Cencora has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Institutional and Insider Ownership

97.5% of Cencora shares are owned by institutional investors. Comparatively, 85.0% of Community Health Systems shares are owned by institutional investors. 0.4% of Cencora shares are owned by insiders. Comparatively, 11.1% of Community Health Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Cencora beats Community Health Systems on 11 of the 14 factors compared between the two stocks.

About Cencora

Cencora, Inc. sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals primarily in Europe; and provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.

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.