Financial Contrast: Surgical Care Affiliates (SCAI) versus Its Competitors

Surgical Care Affiliates (NASDAQ: SCAI) is one of 49 public companies in the “Healthcare Facilities & Services” industry, but how does it weigh in compared to its peers? We will compare Surgical Care Affiliates to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

75.6% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 3.3% of Surgical Care Affiliates shares are held by insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Surgical Care Affiliates and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Surgical Care Affiliates 21.52% 13.07% 12.83%
Surgical Care Affiliates Competitors 11.75% 0.71% 1.11%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Surgical Care Affiliates and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Surgical Care Affiliates 0 2 0 0 2.00
Surgical Care Affiliates Competitors 201 1367 1899 35 2.50

Surgical Care Affiliates presently has a consensus price target of $50.00, indicating a potential upside of Infinity. As a group, “Healthcare Facilities & Services” companies have a potential downside of 7.53%. Given Surgical Care Affiliates’ higher possible upside, equities analysts clearly believe Surgical Care Affiliates is more favorable than its peers.

Valuation & Earnings

This table compares Surgical Care Affiliates and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Surgical Care Affiliates N/A N/A N/A
Surgical Care Affiliates Competitors $6.60 billion $207.40 million 440.84

Surgical Care Affiliates’ peers have higher revenue and earnings than Surgical Care Affiliates. Surgical Care Affiliates is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Surgical Care Affiliates peers beat Surgical Care Affiliates on 6 of the 10 factors compared.

About Surgical Care Affiliates

Surgical Care Affiliates, Inc. is a provider of solutions to physicians, health plans and health systems to optimize surgical care. The Company offers tools and systems in the areas of clinical benchmarking, clinical best practices, operating efficiency, care coordination and supply chain management. As of December 31, 2016, the Company operated a network of surgical facilities in the United States, which included 197 ambulatory surgery centers (ASCs) and seven surgical hospitals in partnership with approximately 3,000 physician partners. The Company’s operations consist of its ownership and management of ASCs and surgical hospitals. Its ASCs provide the facilities, equipment, supplies and clinical support staff necessary to provide non-emergency surgical services to patients not requiring hospitalization. Its surgical hospitals allow physicians to perform a range of surgical procedures, including surgeries, and allow patients to stay in the hospital for several nights to recover.

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