Comprehensive Stock Comparison
Compare DaVita Inc. (DVA) vs Tenet Healthcare Corporation (THC) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | DVA | 6.5% revenue growth vs THC's 3.1% |
| Value | DVA | Lower P/E (11.0x vs 14.1x) |
| Quality / Margins | THC | 6.6% net margin vs DVA's 5.5% |
| Stability / Safety | DVA | Beta 0.35 vs THC's 0.93 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | THC | +89.1% vs DVA's +5.7% |
| Efficiency (ROA) | THC | 4.7% ROA vs DVA's 4.3%, ROIC 13.5% vs 10.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
DaVita is a leading provider of kidney dialysis services for patients with chronic kidney failure. It generates revenue primarily from operating outpatient dialysis centers — which provide the bulk of its income — along with related lab services, home-based dialysis, and integrated care arrangements. The company's scale and network of over 2,800 U.S. centers create significant barriers to entry and operational efficiencies in a capital-intensive, regulated healthcare segment.
Tenet Healthcare is a diversified healthcare services company that operates hospitals, ambulatory surgery centers, and urgent care facilities. It generates revenue primarily from hospital operations (acute care services) and ambulatory care centers, with additional income from its Conifer segment providing revenue cycle management services to other healthcare providers. The company's scale and integrated network of facilities across multiple states create operational efficiencies and referral pathways that serve as its competitive advantage.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
THC leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). DVA leads in 1 (Analyst Outlook). 1 tied.
Financial Metrics (TTM)
THC is the larger business by revenue, generating $21.3B annually — 1.6x DVA's $13.6B. Profitability is closely matched — net margins range from 6.6% (THC) to 5.5% (DVA).
| Metric | DVADaVita Inc. | THCTenet Healthcare … |
|---|---|---|
| RevenueTrailing 12 months | $13.6B | $21.3B |
| EBITDAEarnings before interest/tax | $2.7B | $4.4B |
| Net IncomeAfter-tax profit | $747M | $1.4B |
| Free Cash FlowCash after capex | $1.3B | $2.5B |
| Gross MarginGross profit ÷ Revenue | +30.9% | +55.9% |
| Operating MarginEBIT ÷ Revenue | +14.9% | +16.5% |
| Net MarginNet income ÷ Revenue | +5.5% | +6.6% |
| FCF MarginFCF ÷ Revenue | +9.6% | +11.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.9% | +9.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -20.7% | +27.1% |
Valuation Metrics
At 15.5x trailing earnings, THC trades at a 10% valuation discount to DVA's 17.2x P/E. Adjusting for growth (PEG ratio), THC offers better value at 0.47x vs DVA's 2.38x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | DVADaVita Inc. | THCTenet Healthcare … |
|---|---|---|
| Market CapShares × price | $10.4B | $21.0B |
| Enterprise ValueMkt cap + debt − cash | $24.7B | $31.3B |
| Trailing P/EPrice ÷ TTM EPS | 17.23x | 15.45x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.02x | 14.12x |
| PEG RatioP/E ÷ EPS growth rate | 2.38x | 0.47x |
| EV / EBITDAEnterprise value multiple | 9.08x | 7.17x |
| Price / SalesMarket cap ÷ Revenue | 0.77x | 0.99x |
| Price / BookPrice ÷ Book value/share | 11.89x | 2.42x |
| Price / FCFMarket cap ÷ FCF | 7.97x | 8.32x |
Profitability & Efficiency
DVA delivers a 64.5% return on equity — every $100 of shareholder capital generates $64 in annual profit, vs $16 for THC. THC carries lower financial leverage with a 1.47x debt-to-equity ratio, signaling a more conservative balance sheet compared to DVA's 12.99x. On the Piotroski fundamental quality scale (0–9), THC scores 7/9 vs DVA's 5/9, reflecting strong financial health.
| Metric | DVADaVita Inc. | THCTenet Healthcare … |
|---|---|---|
| ROE (TTM)Return on equity | +64.5% | +15.7% |
| ROA (TTM)Return on assets | +4.3% | +4.7% |
| ROICReturn on invested capital | +10.5% | +13.5% |
| ROCEReturn on capital employed | +14.0% | +14.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 12.99x | 1.47x |
| Net DebtTotal debt minus cash | $14.3B | $10.3B |
| Cash & Equiv.Liquid assets | $758M | $2.9B |
| Total DebtShort + long-term debt | $15.0B | $13.2B |
| Interest CoverageEBIT ÷ Interest expense | 3.51x | 5.85x |
Total Returns (with DRIP)
A $10,000 investment in THC five years ago would be worth $45,270 today (with dividends reinvested), compared to $15,197 for DVA. Over the past 12 months, THC leads with a +89.1% total return vs DVA's +5.7%. The 3-year compound annual growth rate (CAGR) favors THC at 59.9% vs DVA's 23.9% — a key indicator of consistent wealth creation.
| Metric | DVADaVita Inc. | THCTenet Healthcare … |
|---|---|---|
| YTD ReturnYear-to-date | +36.5% | +20.0% |
| 1-Year ReturnPast 12 months | +5.7% | +89.1% |
| 3-Year ReturnCumulative with dividends | +90.0% | +309.0% |
| 5-Year ReturnCumulative with dividends | +52.0% | +352.7% |
| 10-Year ReturnCumulative with dividends | +136.9% | +864.5% |
| CAGR (3Y)Annualised 3-year return | +23.9% | +59.9% |
Risk & Volatility
DVA is the less volatile stock with a 0.35 beta — it tends to amplify market swings less than THC's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | DVADaVita Inc. | THCTenet Healthcare … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.35x | 0.93x |
| 52-Week HighHighest price in past year | $157.91 | $240.57 |
| 52-Week LowLowest price in past year | $101.00 | $109.82 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +99.5% |
| RSI (14)Momentum oscillator 0–100 | 71.1 | 74.5 |
| Avg Volume (50D)Average daily shares traded | 961K | 826K |
Analyst Outlook
Wall Street rates DVA as "Hold" and THC as "Buy". Consensus price targets imply 7.9% upside for DVA (target: $169) vs 7.5% for THC (target: $257).
| Metric | DVADaVita Inc. | THCTenet Healthcare … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $168.67 | $257.45 |
| # AnalystsCovering analysts | 23 | 32 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 3 | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +17.2% | +6.8% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| DaVita Inc. (DVA) | 100 | 135.22 | +35.2% |
| Tenet Healthcare Co… (THC) | 100 | 662.08 | +562.1% |
Tenet Healthcare Co… (THC) returned +353% over 5 years vs DaVita Inc. (DVA)'s +52%. A $10,000 investment in THC 5 years ago would be worth $45,270 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| DaVita Inc. (DVA) | $14.7B | $13.6B | -7.5% |
| Tenet Healthcare Co… (THC) | $19.6B | $21.3B | +8.6% |
DaVita Inc.'s revenue grew from $14.7B (2016) to $13.6B (2025) — a -0.9% CAGR. Tenet Healthcare Corporation's revenue grew from $19.6B (2016) to $21.3B (2025) — a 0.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| DaVita Inc. (DVA) | 6.0% | 5.5% | -8.3% |
| Tenet Healthcare Co… (THC) | -1.0% | 6.6% | +774.8% |
DaVita Inc.'s net margin went from 6% (2016) to 5% (2025). Tenet Healthcare Corporation's net margin went from -1% (2016) to 7% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| DaVita Inc. (DVA) | 20.8 | 12.5 | -39.9% |
| Tenet Healthcare Co… (THC) | 16 | 12.8 | -20.0% |
DaVita Inc. has traded in a 11x–21x P/E range over 9 years; current trailing P/E is ~17x. Tenet Healthcare Corporation has traded in a 4x–16x P/E range over 7 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| DaVita Inc. (DVA) | 4.29 | 9.07 | +111.4% |
| Tenet Healthcare Co… (THC) | -1.93 | 15.49 | +902.6% |
DaVita Inc.'s EPS grew from $4.29 (2016) to $9.07 (2025) — a 9% CAGR. Tenet Healthcare Corporation's EPS grew from $-1.93 (2016) to $15.49 (2025).
Chart 6Free Cash Flow — 5 Years
DaVita Inc. generated $1B FCF in 2025 (+2% vs 2021). Tenet Healthcare Corporation generated $3B FCF in 2025 (+178% vs 2021).
DVA vs THC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DVA or THC a better buy right now?
Tenet Healthcare Corporation (THC) offers the better valuation at 15.5x trailing P/E (14.1x 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.
02Which has the better valuation — DVA or THC?
On trailing P/E, Tenet Healthcare Corporation (THC) is the cheapest at 15.5x versus DaVita Inc. at 17.2x. On forward P/E, DaVita Inc. is actually cheaper at 11.0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Tenet Healthcare Corporation wins at 0.43x versus DaVita Inc.'s 1.52x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — DVA or THC?
Over the past 5 years, Tenet Healthcare Corporation (THC) delivered a total return of +352.7%, compared to +52.0% for DaVita Inc. (DVA). A $10,000 investment in THC five years ago would be worth approximately $45K today (assuming dividends reinvested). Over 10 years, the gap is even starker: THC returned +864.5% versus DVA's +136.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DVA or THC?
By beta (market sensitivity over 5 years), DaVita Inc. (DVA) is the lower-risk stock at 0.35β versus Tenet Healthcare Corporation's 0.93β — meaning THC is approximately 167% more volatile than DVA relative to the S&P 500. On balance sheet safety, Tenet Healthcare Corporation (THC) carries a lower debt/equity ratio of 147% versus 13% for DaVita Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — DVA or THC?
Tenet Healthcare Corporation (THC) is the more profitable company, earning 6.6% net margin versus 5.5% for DaVita Inc. — meaning it keeps 6.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: THC leads at 16.5% versus 14.7% for DVA. At the gross margin level — before operating expenses — THC leads at 41.4%, 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.
06Is DVA or THC more undervalued right now?
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 0.43x versus DaVita Inc.'s 1.52x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, DaVita Inc. (DVA) trades at 11.0x forward P/E versus 14.1x for Tenet Healthcare Corporation — 3.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DVA: 7.9% to $168.67.
07Which pays a better dividend — DVA or THC?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is DVA or THC better for a retirement portfolio?
For long-horizon retirement investors, DaVita Inc. (DVA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.35), +136.9% 10Y return). Both have compounded well over 10 years (DVA: +136.9%, THC: +864.5%), 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.
09What are the main differences between DVA and THC?
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.
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