HealthSouth Corporation (NYSE: HLS) is one of 50 publicly-traded companies in the “Healthcare Facilities & Services” industry, but how does it compare to its rivals? We will compare HealthSouth Corporation to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

HealthSouth Corporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, HealthSouth Corporation’s rivals have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.

Earnings & Valuation

This table compares HealthSouth Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HealthSouth Corporation $3.77 billion $817.10 million 17.04
HealthSouth Corporation Competitors $6.12 billion $881.66 million 35.54

HealthSouth Corporation’s rivals have higher revenue and earnings than HealthSouth Corporation. HealthSouth Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares HealthSouth Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HealthSouth Corporation 6.70% 25.07% 5.51%
HealthSouth Corporation Competitors 9.07% 0.33% 0.50%

Analyst Recommendations

This is a summary of current recommendations for HealthSouth Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthSouth Corporation 1 3 3 0 2.29
HealthSouth Corporation Competitors 266 1582 1975 38 2.46

HealthSouth Corporation presently has a consensus price target of $49.83, indicating a potential upside of 7.52%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 9.04%. Given HealthSouth Corporation’s higher probable upside, equities analysts plainly believe HealthSouth Corporation is more favorable than its rivals.

Dividends

HealthSouth Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.1%. HealthSouth Corporation pays out 35.3% of its earnings in the form of a dividend. As a group, “Healthcare Facilities & Services” companies pay a dividend yield of 1.0% and pay out 58.7% of their earnings in the form of a dividend. HealthSouth Corporation has raised its dividend for 3 consecutive years. HealthSouth Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

93.0% of HealthSouth Corporation shares are held by institutional investors. Comparatively, 69.8% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 1.6% of HealthSouth Corporation shares are held by company insiders. Comparatively, 14.7% of shares of all “Healthcare Facilities & Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

HealthSouth Corporation rivals beat HealthSouth Corporation on 9 of the 15 factors compared.

HealthSouth Corporation Company Profile

HealthSouth Corporation (HealthSouth) is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in 35 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The Company manages its operations through segments, including inpatient rehabilitation, and home health and hospice. It is an owner and operator of inpatient rehabilitation hospitals. It provides specialized rehabilitative treatment on both an inpatient and outpatient basis. It offers its home health and hospice services through Encompass Home Health and Hospice business (Encompass). Encompass operates home health and hospice agencies in 25 states, with concentrations in the Southeast, Oklahoma, and Texas. As of December 31, 2016, the Company operated 123 inpatient rehabilitation hospitals. As of December 31, 2016, the Company managed five inpatient rehabilitation units through management contracts.

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