Critical Review: Getinge (OTCMKTS:GNGBY) vs. Ardent Health (NYSE:ARDT)

Getinge (OTCMKTS:GNGBY) and Ardent Health (NYSE:ARDT) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Getinge and Ardent Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	1	1	0	2.50
Ardent Health	2	5	7	0	2.36

Ardent Health has a consensus target price of $14.25, suggesting a potential upside of 47.70%. Given Ardent Health’s higher probable upside, analysts clearly believe Ardent Health is more favorable than Getinge.

Valuation and Earnings

This table compares Getinge and Ardent Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge	$3.57 billion	1.58	$230.87 million	$0.86	24.06
Ardent Health	$6.32 billion	0.22	$135.81 million	$0.96	10.05

Getinge has higher earnings, but lower revenue than Ardent Health. Ardent Health is trading at a lower price-to-earnings ratio than Getinge, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Getinge has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Ardent Health has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares Getinge and Ardent Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getinge	6.54%	10.60%	5.47%
Ardent Health	2.15%	14.30%	4.58%

Summary

Getinge beats Ardent Health on 7 of the 12 factors compared between the two stocks.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

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.