Community Health Systems (NYSE: CYH) and Air Methods (NASDAQ:AIRM) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Community Health Systems -3.97% -3.10% -0.22%
Air Methods 6.67% 14.18% 4.43%

Valuation & Earnings

This table compares Community Health Systems and Air Methods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Health Systems $18.44 billion 0.03 -$1.72 billion ($5.98) -0.71
Air Methods N/A N/A N/A $2.59 16.58

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

Analyst Ratings

This is a summary of recent ratings and target prices for Community Health Systems and Air Methods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Health Systems 4 10 0 0 1.71
Air Methods 0 3 1 0 2.25

Community Health Systems presently has a consensus price target of $5.79, indicating a potential upside of 35.95%. Air Methods has a consensus price target of $43.00, indicating a potential upside of 0.12%. Given Community Health Systems’ higher probable upside, equities research analysts plainly believe Community Health Systems is more favorable than Air Methods.

Insider & Institutional Ownership

94.7% of Community Health Systems shares are owned by institutional investors. 4.7% of Community Health Systems shares are owned by company insiders. Comparatively, 9.0% of Air Methods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Air Methods beats Community Health Systems on 8 of the 11 factors compared between the two stocks.

Community Health Systems Company Profile

Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.

Air Methods Company Profile

Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.

Receive News & Ratings for Community Health Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Health Systems and related companies with Analyst Ratings Network's FREE daily email newsletter.