WallStSmart

DaVita HealthCare Partners Inc (DVA)vsSelect Medical Holdings (SEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DaVita HealthCare Partners Inc generates 150% more annual revenue ($13.64B vs $5.45B). DVA leads profitability with a 5.5% profit margin vs 2.7%. DVA appears more attractively valued with a PEG of 0.56. DVA earns a higher WallStSmart Score of 66/100 (B-).

DVA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.0Value: 8.7Quality: 4.3
Piotroski: 3/9Altman Z: 1.22

SEM

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 7.3Quality: 5.3
Piotroski: 4/9Altman Z: 1.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DVAUndervalued (+11.7%)

Margin of Safety

+11.7%

Fair Value

$163.40

Current Price

$155.11

$8.29 discount

UndervaluedFair: $163.40Overvalued
SEMSignificantly Overvalued (-105.7%)

Margin of Safety

-105.7%

Fair Value

$7.89

Current Price

$16.29

$8.40 premium

UndervaluedFair: $7.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DVA3 strengths · Avg: 8.7/10
Return on EquityProfitability
64.8%10/10

Every $100 of equity generates 65 in profit

PEG RatioValuation
0.568/10

Growing faster than its price suggests

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

SEM2 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Areas to Watch

DVA3 concerns · Avg: 2.7/10
Profit MarginProfitability
5.5%3/10

5.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.222/10

Distress zone — elevated risk

SEM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.744/10

Distress zone — elevated risk

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DVA

The strongest argument for DVA centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.56 suggests the stock is reasonably priced for its growth.

Bull Case : SEM

The strongest argument for SEM centers on Price/Book, P/E Ratio.

Bear Case : DVA

The primary concerns for DVA are Profit Margin, Piotroski F-Score, Altman Z-Score.

Bear Case : SEM

The primary concerns for SEM are PEG Ratio, Altman Z-Score, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

SEM carries more volatility with a beta of 0.96 — expect wider price swings.

DVA is growing revenue faster at 9.9% — sustainability is the question.

DVA generates stronger free cash flow (395M), providing more financial flexibility.

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DVA scores higher overall (66/100 vs 51/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

DaVita HealthCare Partners Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

DaVita Inc. provides kidney dialysis services through a network of outpatient dialysis centers in the United States.

Select Medical Holdings

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. The company is headquartered in Mechanicsburg, Pennsylvania.

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