WallStSmart

Tenet Healthcare Corporation (THC)vsUniversal Health Services Inc (UHS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tenet Healthcare Corporation generates 23% more annual revenue ($21.86B vs $17.76B). UHS leads profitability with a 8.6% profit margin vs 7.8%. UHS appears more attractively valued with a PEG of 1.16. UHS earns a higher WallStSmart Score of 72/100 (B).

THC

Strong Buy

72

out of 100

Grade: B

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

UHS

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 8.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

THCUndervalued (+78.9%)

Margin of Safety

+78.9%

Fair Value

$1070.59

Current Price

$186.91

$883.68 discount

UndervaluedFair: $1070.59Overvalued
UHSUndervalued (+40.6%)

Margin of Safety

+40.6%

Fair Value

$389.54

Current Price

$165.37

$224.17 discount

UndervaluedFair: $389.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

UHS3 strengths · Avg: 9.7/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
21.4%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

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

UHS0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : UHS

The strongest argument for UHS centers on P/E Ratio, Price/Book, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bear Case : THC

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

Bear Case : UHS

No major red flags identified for UHS, but monitor valuation.

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 72/100) and 11.7% revenue growth. UHS offers better value entry with a 40.6% 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.

Tenet Healthcare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

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

Universal Health Services Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.

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