Head to Head Analysis: Privia Health Group (NASDAQ:PRVA) vs. Cardinal Health (NYSE:CAH)

Privia Health Group (NASDAQ:PRVA) and Cardinal Health (NYSE:CAH) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

94.5% of Privia Health Group shares are held by institutional investors. Comparatively, 87.2% of Cardinal Health shares are held by institutional investors. 5.7% of Privia Health Group shares are held by company insiders. Comparatively, 0.1% of Cardinal Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Privia Health Group has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Cardinal Health has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares Privia Health Group and Cardinal Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Privia Health Group	$2.43 billion	1.27	$22.92 million	$0.26	92.92
Cardinal Health	$254.25 billion	0.25	$1.71 billion	$7.73	35.78

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

Profitability

This table compares Privia Health Group and Cardinal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Privia Health Group	1.43%	4.20%	2.38%
Cardinal Health	0.71%	-102.72%	4.86%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Privia Health Group and Cardinal Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Privia Health Group	0	3	9	0	2.75
Cardinal Health	0	3	15	1	2.89

Privia Health Group currently has a consensus target price of $31.25, indicating a potential upside of 29.35%. Cardinal Health has a consensus target price of $279.44, indicating a potential upside of 1.04%. Given Privia Health Group’s higher probable upside, equities research analysts plainly believe Privia Health Group is more favorable than Cardinal Health.

Summary

Privia Health Group beats Cardinal Health on 8 of the 15 factors compared between the two stocks.

About Privia Health Group

Privia Health Group, Inc. is a physician enablement company that partners with independent medical groups, health systems and other providers. Its technology-enabled platform is designed to help physicians manage their practices and deliver coordinated care, while retaining their clinical independence. The company provides practice management, technology, care coordination and population health services. It also helps providers participate in value-based care arrangements, which tie payments more closely to the quality and efficiency of care.

About Cardinal Health

Cardinal Health is a healthcare services and products company that distributes pharmaceuticals and medical supplies. Its customers include pharmacies, hospitals, surgery centers, physician offices and other healthcare providers. The company’s businesses include pharmaceutical distribution and specialty services, as well as the sourcing and distribution of medical and surgical products. Its offerings support areas such as specialty medications, medication management and supply-chain operations. Cardinal Health traces its roots to a wholesale business founded in Ohio in 1971 and later expanded into pharmaceutical distribution.