Contrasting Nobilis Health Corp (NYSE:HLTH) and Diplomat Pharmacy (DPLO)

Nobilis Health Corp (NYSEAMERICAN: HLTH) and Diplomat Pharmacy (NYSE:DPLO) are both small-cap healthcare facilities & services – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

66.5% of Diplomat Pharmacy shares are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Nobilis Health Corp and Diplomat Pharmacy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Nobilis Health Corp N/A N/A N/A $0.12 10.83
Diplomat Pharmacy $4.41 billion 0.30 $28.27 million $0.10 194.10

Diplomat Pharmacy has higher revenue and earnings than Nobilis Health Corp. Nobilis Health Corp is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nobilis Health Corp and Diplomat Pharmacy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nobilis Health Corp 0 2 1 0 2.33
Diplomat Pharmacy 1 4 3 0 2.25

Nobilis Health Corp presently has a consensus target price of $2.25, suggesting a potential upside of 73.08%. Diplomat Pharmacy has a consensus target price of $19.56, suggesting a potential upside of 0.79%. Given Nobilis Health Corp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nobilis Health Corp is more favorable than Diplomat Pharmacy.

Profitability

This table compares Nobilis Health Corp and Diplomat Pharmacy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nobilis Health Corp N/A N/A N/A
Diplomat Pharmacy 0.18% 8.30% 4.70%

Volatility & Risk

Nobilis Health Corp has a beta of -0.82, indicating that its share price is 182% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Summary

Diplomat Pharmacy beats Nobilis Health Corp on 8 of the 11 factors compared between the two stocks.

About Nobilis Health Corp

Nobilis Health Corp. (Nobilis) owns and manages healthcare facilities in the States of Texas and Arizona, consisting primarily of ambulatory surgery centers (ASCs) and acute-care and surgical hospitals. The Company’s segments include Medical Services, Marketing Services and Corporate. The Medical Services segment owns and manages approximately nine healthcare facilities in Texas and Arizona; over four hospitals, and approximately five ambulatory surgery centers. The Marketing Services segment provides marketing services, patient education services and patient care co-ordination management services. The Company provides care across a range of specialties in its facilities, including orthopedic surgery, podiatric surgery, pain management, gastro-intestinal, gynecology, and general surgery. Many of its surgical patients require additional complementary healthcare services, and its suite of ancillary services, including surgical assist, intraoperative neuromonitoring and anesthesia.

About Diplomat Pharmacy

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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