Cardinal Health (NYSE:CAH – Get Free Report) and Ardent Health (NYSE:ARDT – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Risk and Volatility
Cardinal Health has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Ardent Health has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Profitability
This table compares Cardinal Health and Ardent Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardinal Health | 0.67% | -98.53% | 4.69% |
| Ardent Health | 1.22% | 10.35% | 3.36% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardinal Health | 0 | 3 | 16 | 0 | 2.84 |
| Ardent Health | 2 | 6 | 7 | 0 | 2.33 |
Cardinal Health presently has a consensus price target of $269.38, suggesting a potential upside of 6.41%. Ardent Health has a consensus price target of $12.79, suggesting a potential upside of 9.15%. Given Ardent Health’s higher probable upside, analysts plainly believe Ardent Health is more favorable than Cardinal Health.
Valuation and Earnings
This table compares Cardinal Health and Ardent Health”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardinal Health | $254.25 billion | 0.23 | $1.71 billion | $7.23 | 35.02 |
| Ardent Health | $6.32 billion | 0.26 | $135.81 million | $0.55 | 21.31 |
Cardinal Health has higher revenue and earnings than Ardent Health. Ardent Health is trading at a lower price-to-earnings ratio than Cardinal Health, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
87.2% of Cardinal Health shares are held by institutional investors. 0.1% of Cardinal Health shares are held by insiders. Comparatively, 1.9% of Ardent Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Cardinal Health beats Ardent Health on 8 of the 14 factors compared between the two stocks.
About Cardinal Health
Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
About Ardent Health
Ardent Health Partners, Inc. owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, Inc. is a subsidiary of EGI-AM Investments, L.L.C.
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