United American Healthcare (OTCMKTS:UAHC) and Select Medical (NYSE:SEM) Financial Review

United American Healthcare (OTCMKTS:UAHC) and Select Medical (NYSE:SEM) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Dividends

United American Healthcare pays an annual dividend of $0.08 per share and has a dividend yield of 335.6%. Select Medical pays an annual dividend of $0.25 per share and has a dividend yield of 1.9%. Select Medical pays out 23.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for United American Healthcare and Select Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United American Healthcare	0	0	0	0	0.00
Select Medical	0	1	3	0	2.75

Select Medical has a consensus price target of $20.25, suggesting a potential upside of 55.16%. Given Select Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Select Medical is more favorable than United American Healthcare.

Institutional & Insider Ownership

89.5% of Select Medical shares are held by institutional investors. 14.3% of United American Healthcare shares are held by company insiders. Comparatively, 11.6% of Select Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

United American Healthcare has a beta of -1.5, suggesting that its stock price is 250% less volatile than the S&P 500. Comparatively, Select Medical has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares United American Healthcare and Select Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United American Healthcare	N/A	N/A	N/A
Select Medical	2.37%	8.87%	2.93%

Earnings & Valuation

This table compares United American Healthcare and Select Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United American Healthcare	N/A	N/A	$240,000.00	N/A	N/A
Select Medical	$5.19 billion	0.31	$214.04 million	$1.06	12.31

Select Medical has higher revenue and earnings than United American Healthcare.

Summary

Select Medical beats United American Healthcare on 10 of the 13 factors compared between the two stocks.

About United American Healthcare

United American Healthcare Corporation, through its subsidiaries, provides contract manufacturing services to the medical device industry. It also focuses on the production of natural rubber. The company was incorporated in 1983 and is based in Chicago, Illinois.

About Select Medical

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra. The Critical Illness Recovery Hospital segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring prolonged recovery, renal disease, neurological events, and trauma. The Rehabilitation Hospital segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. The Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, pediatric and cancer rehabilitation, and athletic training services. The Concentra segment operates and provides occupational health centers, telemedicine platforms, onsite clinics, and contract services at employer worksites that deliver occupational health services, consumer health, physical therapy, and preventive care. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.