WallStSmart

Healthcare Services Group Inc (HCSG)vsTenet Healthcare Corporation (THC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tenet Healthcare Corporation generates 1060% more annual revenue ($21.31B vs $1.84B). THC leads profitability with a 6.6% profit margin vs 3.2%. HCSG appears more attractively valued with a PEG of 2.39. THC earns a higher WallStSmart Score of 66/100 (B-).

HCSG

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 5.5Value: 10.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.71

THC

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 6/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCSGUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$37.91

Current Price

$19.69

$18.22 discount

UndervaluedFair: $37.91Overvalued
THCUndervalued (+68.8%)

Margin of Safety

+68.8%

Fair Value

$724.93

Current Price

$200.04

$524.89 discount

UndervaluedFair: $724.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCSG4 strengths · Avg: 9.5/10
EPS GrowthGrowth
172.4%10/10

Earnings expanding 172.4% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

THC3 strengths · Avg: 8.3/10
Return on EquityProfitability
27.0%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
27.6%8/10

Earnings expanding 27.6% YoY

Areas to Watch

HCSG3 concerns · Avg: 3.3/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

Market CapQuality
$1.39B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

THC3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

PEG RatioValuation
4.692/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : HCSG

The strongest argument for HCSG centers on EPS Growth, Debt/Equity, Altman Z-Score.

Bull Case : THC

The strongest argument for THC centers on Return on Equity, P/E Ratio, EPS Growth.

Bear Case : HCSG

The primary concerns for HCSG are PEG Ratio, Market Cap, Profit Margin. Thin 3.2% margins leave little buffer for downturns.

Bear Case : THC

The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

THC carries more volatility with a beta of 1.41 — expect wider price swings.

THC is growing revenue faster at 8.9% — sustainability is the question.

THC generates stronger free cash flow (367M), providing more financial flexibility.

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

THC scores higher overall (66/100 vs 58/100). HCSG offers better value entry with a 41.2% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Healthcare Services Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Healthcare Services Group, Inc. provides management, administrative, and operational services to the cleaning, laundry, bedding, facility maintenance, and dietary services departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. . The company is headquartered in Bensalem, Pennsylvania.

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Tenet Healthcare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.

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