LifePoint Health (NASDAQ: LPNT) and The Joint Corp. (NASDAQ:JYNT) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Earnings and Valuation

This table compares LifePoint Health and The Joint Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LifePoint Health $6.42 billion 0.36 $760.40 million $4.48 12.92
The Joint Corp. $22.97 million 2.73 -$4.53 million ($0.87) -5.47

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

Institutional and Insider Ownership

99.5% of LifePoint Health shares are held by institutional investors. Comparatively, 47.0% of The Joint Corp. shares are held by institutional investors. 7.3% of LifePoint Health shares are held by company insiders. Comparatively, 6.1% of The Joint Corp. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for LifePoint Health and The Joint Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LifePoint Health 2 8 3 0 2.08
The Joint Corp. 0 0 4 0 3.00

LifePoint Health currently has a consensus price target of $65.50, suggesting a potential upside of 13.13%. The Joint Corp. has a consensus price target of $6.15, suggesting a potential upside of 29.20%. Given The Joint Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe The Joint Corp. is more favorable than LifePoint Health.

Profitability

This table compares LifePoint Health and The Joint Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LifePoint Health 2.61% 7.40% 2.66%
The Joint Corp. -48.08% -103.25% -42.06%

Volatility and Risk

LifePoint Health has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, The Joint Corp. has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Summary

LifePoint Health beats The Joint Corp. on 8 of the 13 factors compared between the two stocks.

About LifePoint Health

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. As of December 31, 2016, the Company operated 72 hospital campuses in 22 states, having a total of 9,424 licensed beds. It offers a range of general and specialized healthcare services to patients through a network of hospitals and outpatient facilities. Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services, and in some of its hospitals, the Company offers specialized services, such as open-heart surgery, skilled nursing, psychiatric care and neuro-surgery. It provides outpatient services, such as same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine and lithotripsy.

About The Joint Corp.

The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.

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