Critical Contrast: SunLink Health Systems (NYSE:SSY) versus Ardent Health Partners (NYSE:ARDT)

SunLink Health Systems (NYSE:SSY) and Ardent Health Partners (NYSE:ARDT) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares SunLink Health Systems and Ardent Health Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunLink Health Systems	-4.71%	-16.31%	-11.96%
Ardent Health Partners	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunLink Health Systems	$32.44 million	0.17	-$1.53 million	($0.22)	-3.64
Ardent Health Partners	$5.41 billion	0.43	$53.90 million	N/A	N/A

Ardent Health Partners has higher revenue and earnings than SunLink Health Systems.

Institutional and Insider Ownership

23.7% of SunLink Health Systems shares are held by institutional investors. 27.9% of SunLink Health Systems 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for SunLink Health Systems and Ardent Health Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunLink Health Systems	0	0	0	0	0.00
Ardent Health Partners	0	2	8	2	3.00

Ardent Health Partners has a consensus price target of $21.64, suggesting a potential upside of 32.17%. Given Ardent Health Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Ardent Health Partners is more favorable than SunLink Health Systems.

Summary

Ardent Health Partners beats SunLink Health Systems on 10 of the 12 factors compared between the two stocks.

About SunLink Health Systems

SunLink Health Systems, Inc., through its subsidiaries, provides healthcare products and services in the southeastern United States. It operates in two segments, Healthcare Services and Pharmacy. The Healthcare Services segment owns and operates a 49-licensed-bed acute care hospital, which includes a 26-bed geriatric psychiatry unit; two clinics; and a 66-bed extended care and rehabilitation centre. This segment also provides information technology services; and owns five acers unimproved lands. The Pharmacy segment offers institutional pharmacy services consisting of provision of specialty and non-specialty pharmaceutical and biological products, such as nursing homes, assisted living facilities, behavioural and specialty hospitals, hospices, and correctional facilities; non-institutional pharmacy services, including private residences; and durable medical equipment products and services, including the sale and rental of products for institutional clients or to patients in institutional settings and patient-administered home care, as well as retails pharmacy products and services. SunLink Health Systems, Inc. was incorporated in 1959 and is based in Atlanta, Georgia.

About Ardent Health Partners

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.