WallStSmart

DaVita HealthCare Partners Inc (DVA)vsTenet Healthcare Corporation (THC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tenet Healthcare Corporation generates 60% more annual revenue ($21.86B vs $13.64B). THC leads profitability with a 7.8% profit margin vs 5.5%. DVA appears more attractively valued with a PEG of 0.56. THC earns a higher WallStSmart Score of 72/100 (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

THC

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 6/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DVAUndervalued (+42.5%)

Margin of Safety

+42.5%

Fair Value

$250.86

Current Price

$154.08

$96.78 discount

UndervaluedFair: $250.86Overvalued
THCUndervalued (+78.9%)

Margin of Safety

+78.9%

Fair Value

$1070.59

Current Price

$186.91

$883.68 discount

UndervaluedFair: $1070.59Overvalued

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
15.9x8/10

Attractively priced relative to earnings

THC5 strengths · Avg: 9.2/10
P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
87.6%10/10

Earnings expanding 87.6% YoY

Operating MarginProfitability
23.1%8/10

Strong operational efficiency at 23.1%

Free Cash FlowQuality
$1.46B8/10

Generating 1.5B in free cash flow

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

THC3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Profit MarginProfitability
7.8%3/10

7.8% margin — thin

PEG RatioValuation
4.312/10

Expensive relative to growth rate

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 : THC

The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 11.7% demonstrates continued momentum.

Bear Case : DVA

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

Bear Case : THC

The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

THC carries more volatility with a beta of 1.50 — expect wider price swings.

THC is growing revenue faster at 11.7% — sustainability is the question.

THC generates stronger free cash flow (1.5B), providing more financial flexibility.

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

Bottom Line

THC scores higher overall (72/100 vs 66/100) and 11.7% revenue growth. DVA offers better value entry with a 42.5% margin of safety. Both earn "Strong Buy" and "Strong 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.

Tenet Healthcare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.

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