UHS vs THC

For growth investors, Universal Health Services, Inc.

(UHS) is the stronger pick with 9. 7% revenue growth year-over-year, versus 3. 1% for Tenet Healthcare Corporation (THC). Universal Health Services, Inc. (UHS) offers the better valuation at 7. 4x trailing P/E (7. 3x forward), making it the more compelling value choice. Analysts rate Tenet Healthcare Corporation (THC) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Universal Health Services, Inc.

(UHS) is the cheapest at 7. 4x versus Tenet Healthcare Corporation at 12. 5x. On forward P/E, Universal Health Services, Inc. is actually cheaper at 7. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Tenet Healthcare Corporation wins at 0. 33x versus Universal Health Services, Inc. 's 0. 46x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Tenet Healthcare Corporation (THC) delivered a total return of +190.

4%, compared to +12. 5% for Universal Health Services, Inc. (UHS). Over 10 years, the gap is even starker: THC returned +523. 4% versus UHS's +30. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Universal Health Services, Inc.

(UHS) is the lower-risk stock at 0. 60β versus Tenet Healthcare Corporation's 0. 71β — meaning THC is approximately 17% more volatile than UHS relative to the S&P 500. On balance sheet safety, Universal Health Services, Inc. (UHS) carries a lower debt/equity ratio of 74% versus 147% for Tenet Healthcare Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Universal Health Services, Inc.

(UHS) is pulling ahead at 9. 7% versus 3. 1% for Tenet Healthcare Corporation (THC). On earnings-per-share growth, the picture is similar: Universal Health Services, Inc. grew EPS 37. 3% year-over-year, compared to -52. 6% for Tenet Healthcare Corporation. Over a 3-year CAGR, UHS leads at 9. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Universal Health Services, Inc.

(UHS) is the more profitable company, earning 8. 6% net margin versus 6. 6% for Tenet Healthcare Corporation — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: THC leads at 16. 1% versus 11. 5% for UHS. At the gross margin level — before operating expenses — UHS leads at 90. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Tenet Healthcare Corporation (THC) is the more undervalued stock at a PEG of 0. 33x versus Universal Health Services, Inc. 's 0. 46x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Universal Health Services, Inc. (UHS) trades at 7. 3x forward P/E versus 10. 9x for Tenet Healthcare Corporation — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for THC: 38. 1% to $268. 00.

In this comparison, UHS (0.

5% yield) pays a dividend. THC does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Tenet Healthcare Corporation (THC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

71), +523. 4% 10Y return). Both have compounded well over 10 years (THC: +523. 4%, UHS: +30. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.