Head to Head Comparison: DaVita (NYSE:DVA) & Oscar Health (NYSE:OSCR)

Oscar Health (NYSE:OSCR) and DaVita (NYSE:DVA) are both large-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Oscar Health and DaVita”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oscar Health	$11.70 billion	0.88	-$443.15 million	$1.40	23.79
DaVita	$13.64 billion	0.84	$746.80 million	$12.22	14.65

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

Profitability

This table compares Oscar Health and DaVita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oscar Health	3.60%	38.45%	6.76%
DaVita	6.05%	-217.63%	5.07%

Analyst Recommendations

This is a summary of current ratings for Oscar Health and DaVita, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oscar Health	1	7	4	1	2.38
DaVita	0	3	4	0	2.57

Oscar Health currently has a consensus target price of $33.90, suggesting a potential upside of 1.79%. DaVita has a consensus target price of $233.43, suggesting a potential upside of 30.43%. Given DaVita’s stronger consensus rating and higher possible upside, analysts clearly believe DaVita is more favorable than Oscar Health.

Volatility and Risk

Oscar Health has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500. Comparatively, DaVita has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

75.7% of Oscar Health shares are held by institutional investors. Comparatively, 90.1% of DaVita shares are held by institutional investors. 22.6% of Oscar Health shares are held by insiders. Comparatively, 1.9% of DaVita shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

About Oscar Health

Oscar Health, Inc. operates as a health insurance in the United States. The company offers health plans in individual and small group markets, as well as +Oscar, a technology driven platform that help providers and payors directly enable their shift to value-based care. It also provides reinsurance products. The company was formerly known as Mulberry Health Inc. and changed its name to Oscar Health, Inc. in January 2021. Oscar Health, Inc. was incorporated in 2012 and is headquartered in New York, New York.

About DaVita

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.