Universal Health Services (UHS) versus China Cord Blood Corporation (CO) Critical Analysis
Universal Health Services (NYSE: UHS) and China Cord Blood Corporation (NYSE:CO) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
This table compares Universal Health Services and China Cord Blood Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Health Services||7.10%||15.49%||7.08%|
|China Cord Blood Corporation||22.07%||8.64%||3.50%|
Risk and Volatility
Universal Health Services has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, China Cord Blood Corporation has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Insider and Institutional Ownership
85.3% of Universal Health Services shares are owned by institutional investors. Comparatively, 13.3% of China Cord Blood Corporation shares are owned by institutional investors. 13.2% of Universal Health Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Universal Health Services and China Cord Blood Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Health Services||0||7||5||0||2.42|
|China Cord Blood Corporation||0||0||0||0||N/A|
Universal Health Services currently has a consensus target price of $135.11, indicating a potential upside of 24.95%. Given Universal Health Services’ higher probable upside, research analysts plainly believe Universal Health Services is more favorable than China Cord Blood Corporation.
Valuation and Earnings
This table compares Universal Health Services and China Cord Blood Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Universal Health Services||$10.11 billion||1.02||$1.71 billion||$7.35||14.71|
|China Cord Blood Corporation||$121.47 million||12.34||$51.84 million||$0.29||45.52|
Universal Health Services has higher revenue and earnings than China Cord Blood Corporation. Universal Health Services is trading at a lower price-to-earnings ratio than China Cord Blood Corporation, indicating that it is currently the more affordable of the two stocks.
Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. China Cord Blood Corporation does not pay a dividend. Universal Health Services pays out 5.4% of its earnings in the form of a dividend.
Universal Health Services beats China Cord Blood Corporation on 11 of the 15 factors compared between the two stocks.
Universal Health Services Company Profile
Universal Health Services, Inc. is a holding company. The Company’s principal business is owning and operating, through its subsidiaries, acute care hospitals and outpatient facilities, and behavioral healthcare facilities. The Company’s segments include Acute Care Hospital Services, Behavioral Health Services and Other. As of February 28, 2017, the Company owned and/or operated 319 inpatient facilities, and 33 outpatient and other facilities, located in 37 states, Washington, District of Columbia, the United Kingdom, Puerto Rico and the United States Virgin Islands. The Company’s hospitals provide a range of services, such as oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. As of February 28, 2017, its acute care facilities located in the United States included 26 inpatient acute care hospitals; four free-standing emergency departments, and four outpatient surgery/cancer care centers and one surgical hospital.
China Cord Blood Corporation Company Profile
China Cord Blood Corporation is a provider of cord blood banking services in China. The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China. It provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. It also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The Company provides cord blood processing and storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies, such as cord blood transplants. It also preserves cord blood units donated by the public; provides matching services on such donated units, and delivers matching units to patients in need of transplants. As of March 31, 2016, the Company had three operating cord blood banks.
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