Comprehensive Stock Comparison
Compare Universal Health Services, Inc. (UHS) 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 | UHS | 9.7% revenue growth vs THC's 3.1% |
| Value | UHS | Lower P/E (8.8x vs 14.1x) |
| Quality / Margins | UHS | 8.6% net margin vs THC's 6.6% |
| Stability / Safety | UHS | Beta 0.69 vs THC's 0.93, lower leverage |
| Dividends | UHS | 0.4% yield; 1-year raise streak; THC pays no meaningful dividend |
| Momentum (1Y) | THC | +89.1% vs UHS's +18.1% |
| Efficiency (ROA) | UHS | 9.6% ROA vs THC's 4.7%, ROIC 12.4% vs 13.5% |
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
Universal Health Services is a major hospital operator that owns and runs acute care hospitals alongside behavioral health facilities across the U.S. and internationally. It generates revenue primarily from patient services—split roughly 60% from acute care and 40% from behavioral health—with payments coming from government programs, private insurers, and self-pay patients. The company's scale and geographic diversification across hundreds of facilities create operational efficiencies and a stable revenue base that smaller regional operators cannot match.
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
UHS leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). THC leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
THC and UHS operate at a comparable scale, with $21.3B and $17.4B in trailing revenue. Profitability is closely matched — net margins range from 8.6% (UHS) to 6.6% (THC).
| Metric | UHSUniversal Health … | THCTenet Healthcare … |
|---|---|---|
| RevenueTrailing 12 months | $17.4B | $21.3B |
| EBITDAEarnings before interest/tax | $2.6B | $4.4B |
| Net IncomeAfter-tax profit | $1.5B | $1.4B |
| Free Cash FlowCash after capex | $831M | $2.5B |
| Gross MarginGross profit ÷ Revenue | +67.0% | +55.9% |
| Operating MarginEBIT ÷ Revenue | +11.5% | +16.5% |
| Net MarginNet income ÷ Revenue | +8.6% | +6.6% |
| FCF MarginFCF ÷ Revenue | +4.8% | +11.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.1% | +9.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +41.3% | +27.1% |
Valuation Metrics
At 8.9x trailing earnings, UHS trades at a 42% valuation discount to THC's 15.5x P/E. Adjusting for growth (PEG ratio), THC offers better value at 0.47x vs UHS's 0.56x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | UHSUniversal Health … | THCTenet Healthcare … |
|---|---|---|
| Market CapShares × price | $3M | $21.0B |
| Enterprise ValueMkt cap + debt − cash | $5.0B | $31.3B |
| Trailing P/EPrice ÷ TTM EPS | 8.92x | 15.45x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.80x | 14.12x |
| PEG RatioP/E ÷ EPS growth rate | 0.56x | 0.47x |
| EV / EBITDAEnterprise value multiple | 1.93x | 7.17x |
| Price / SalesMarket cap ÷ Revenue | 0.00x | 0.99x |
| Price / BookPrice ÷ Book value/share | 1.79x | 2.42x |
| Price / FCFMarket cap ÷ FCF | 0.00x | 8.32x |
Profitability & Efficiency
UHS delivers a 20.1% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $16 for THC. UHS carries lower financial leverage with a 0.70x debt-to-equity ratio, signaling a more conservative balance sheet compared to THC's 1.47x.
| Metric | UHSUniversal Health … | THCTenet Healthcare … |
|---|---|---|
| ROE (TTM)Return on equity | +20.1% | +15.7% |
| ROA (TTM)Return on assets | +9.6% | +4.7% |
| ROICReturn on invested capital | +12.4% | +13.5% |
| ROCEReturn on capital employed | +16.2% | +14.1% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.70x | 1.47x |
| Net DebtTotal debt minus cash | $5.0B | $10.3B |
| Cash & Equiv.Liquid assets | $138M | $2.9B |
| Total DebtShort + long-term debt | $5.2B | $13.2B |
| Interest CoverageEBIT ÷ Interest expense | 9.66x | 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 $16,427 for UHS. Over the past 12 months, THC leads with a +89.1% total return vs UHS's +18.1%. The 3-year compound annual growth rate (CAGR) favors THC at 59.9% vs UHS's 16.0% — a key indicator of consistent wealth creation.
| Metric | UHSUniversal Health … | THCTenet Healthcare … |
|---|---|---|
| YTD ReturnYear-to-date | -6.3% | +20.0% |
| 1-Year ReturnPast 12 months | +18.1% | +89.1% |
| 3-Year ReturnCumulative with dividends | +56.1% | +309.0% |
| 5-Year ReturnCumulative with dividends | +64.3% | +352.7% |
| 10-Year ReturnCumulative with dividends | +92.1% | +864.5% |
| CAGR (3Y)Annualised 3-year return | +16.0% | +59.9% |
Risk & Volatility
UHS is the less volatile stock with a 0.69 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. THC currently trades 99.5% from its 52-week high vs UHS's 83.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | UHSUniversal Health … | THCTenet Healthcare … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.69x | 0.93x |
| 52-Week HighHighest price in past year | $246.33 | $240.57 |
| 52-Week LowLowest price in past year | $152.33 | $109.82 |
| % of 52W HighCurrent price vs 52-week peak | +83.7% | +99.5% |
| RSI (14)Momentum oscillator 0–100 | 36.4 | 74.5 |
| Avg Volume (50D)Average daily shares traded | 578K | 826K |
Analyst Outlook
Wall Street rates UHS as "Hold" and THC as "Buy". Consensus price targets imply 19.2% upside for UHS (target: $246) vs 7.5% for THC (target: $257). UHS is the only dividend payer here at 0.39% yield — a key consideration for income-focused portfolios.
| Metric | UHSUniversal Health … | THCTenet Healthcare … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $245.67 | $257.45 |
| # AnalystsCovering analysts | 43 | 32 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | — |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $0.80 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +100.0% | +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 |
|---|---|---|---|
| Universal Health Se… (UHS) | 100 | 153.13 | +53.1% |
| Tenet Healthcare Co… (THC) | 100 | 662.08 | +562.1% |
Tenet Healthcare Co… (THC) returned +353% over 5 years vs Universal Health Se… (UHS)'s +64%. 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 |
|---|---|---|---|
| Universal Health Se… (UHS) | $9.8B | $17.4B | +77.8% |
| Tenet Healthcare Co… (THC) | $19.6B | $21.3B | +8.6% |
Universal Health Services, Inc.'s revenue grew from $9.8B (2016) to $17.4B (2025) — a 6.6% 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 |
|---|---|---|---|
| Universal Health Se… (UHS) | 7.2% | 8.6% | +19.2% |
| Tenet Healthcare Co… (THC) | -1.0% | 6.6% | +774.8% |
Universal Health Services, Inc.'s net margin went from 7% (2016) to 9% (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 |
|---|---|---|---|
| Universal Health Se… (UHS) | 14.5 | 9.4 | -35.2% |
| Tenet Healthcare Co… (THC) | 16 | 12.8 | -20.0% |
Universal Health Services, Inc. has traded in a 9x–16x P/E range over 9 years; current trailing P/E is ~9x. 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 |
|---|---|---|---|
| Universal Health Se… (UHS) | 7.14 | 23.1 | +223.5% |
| Tenet Healthcare Co… (THC) | -1.93 | 15.49 | +902.6% |
Universal Health Services, Inc.'s EPS grew from $7.14 (2016) to $23.10 (2025) — a 14% CAGR. Tenet Healthcare Corporation's EPS grew from $-1.93 (2016) to $15.49 (2025).
Chart 6Free Cash Flow — 5 Years
Universal Health Services, Inc. generated $849M FCF in 2025 (+2929% vs 2021). Tenet Healthcare Corporation generated $3B FCF in 2025 (+178% vs 2021).
UHS vs THC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is UHS or THC a better buy right now?
Universal Health Services, Inc. (UHS) offers the better valuation at 8.9x trailing P/E (8.8x 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 — UHS or THC?
On trailing P/E, Universal Health Services, Inc. (UHS) is the cheapest at 8.9x versus Tenet Healthcare Corporation at 15.5x. On forward P/E, Universal Health Services, Inc. is actually cheaper at 8.8x. 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 Universal Health Services, Inc.'s 0.55x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — UHS or THC?
Over the past 5 years, Tenet Healthcare Corporation (THC) delivered a total return of +352.7%, compared to +64.3% for Universal Health Services, Inc. (UHS). 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 UHS's +92.1%. 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 — UHS or THC?
By beta (market sensitivity over 5 years), Universal Health Services, Inc. (UHS) is the lower-risk stock at 0.69β versus Tenet Healthcare Corporation's 0.93β — meaning THC is approximately 35% 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 70% versus 147% for Tenet Healthcare Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — UHS or THC?
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 16.5% versus 11.5% for UHS. At the gross margin level — before operating expenses — UHS leads at 67.0%, 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 UHS 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 Universal Health Services, Inc.'s 0.55x. 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 8.8x forward P/E versus 14.1x for Tenet Healthcare Corporation — 5.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UHS: 19.2% to $245.67.
07Which pays a better dividend — UHS or THC?
In this comparison, UHS (0.4% yield) pays a dividend. THC does not pay a meaningful dividend and should not be held primarily for income.
08Is UHS or THC better for a retirement portfolio?
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 0.93), +864.5% 10Y return). Both have compounded well over 10 years (THC: +864.5%, UHS: +92.1%), 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 UHS 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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