U.S. Physical Therapy (NYSE: USPH) and Surgery Partners (NASDAQ:SGRY) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.


U.S. Physical Therapy pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Surgery Partners does not pay a dividend. U.S. Physical Therapy pays out 46.8% of its earnings in the form of a dividend. Surgery Partners has increased its dividend for 6 consecutive years.


This table compares U.S. Physical Therapy and Surgery Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Physical Therapy 5.65% 12.91% 7.01%
Surgery Partners 0.63% 6.02% 0.81%

Valuation and Earnings

This table compares U.S. Physical Therapy and Surgery Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
U.S. Physical Therapy $377.24 million 1.92 $60.41 million $1.71 33.63
Surgery Partners $1.13 billion 0.38 $231.39 million $0.15 59.34

Surgery Partners has higher revenue and earnings than U.S. Physical Therapy. U.S. Physical Therapy is trading at a lower price-to-earnings ratio than Surgery Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for U.S. Physical Therapy and Surgery Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Physical Therapy 0 2 2 0 2.50
Surgery Partners 1 1 4 0 2.50

U.S. Physical Therapy currently has a consensus price target of $68.33, indicating a potential upside of 18.84%. Surgery Partners has a consensus price target of $20.40, indicating a potential upside of 129.21%. Given Surgery Partners’ higher possible upside, analysts plainly believe Surgery Partners is more favorable than U.S. Physical Therapy.

Insider and Institutional Ownership

95.7% of U.S. Physical Therapy shares are held by institutional investors. Comparatively, 38.4% of Surgery Partners shares are held by institutional investors. 3.1% of U.S. Physical Therapy shares are held by company insiders. Comparatively, 7.5% of Surgery Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

U.S. Physical Therapy has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.


Surgery Partners beats U.S. Physical Therapy on 9 of the 16 factors compared between the two stocks.

U.S. Physical Therapy Company Profile

U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics that provide pre-and post-operative care, and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers and neurological-related injuries. The Company’s segment is made up of various clinics within partnerships. The Company primarily operates through subsidiary clinic partnerships, in which it owns a general partnership interest and a limited partnership interest, and the managing therapists of the clinics owns the remaining limited partnership interest in the clinics. The Company operates 562 physical therapy clinics in 42 states. There are approximately 380 clinics operated under Clinic Partnerships and over 100 operated as Company-owned Facilities. In addition to its owned clinics, it also manages physical therapy facilities for third parties, primarily physicians, with over 29 third-party facilities under management.

Surgery Partners Company Profile

Surgery Partners, Inc. is a healthcare services company. The Company operates in three lines of business across the United States: Surgical Facility Services, Ancillary Services and Optical Services. The Company’s Surgical Facility Services segment consists of the operation of ambulatory surgery centers (ASCs) and surgical hospitals, which include its anesthesia services. The Company’s surgical facilities primarily provide non-emergency surgical procedures across a range of specialties, which include gastrointestinal (GI), general surgery, ophthalmology, orthopedics and pain management. The Company’s Ancillary Services segment consists of a diagnostic laboratory, a specialty pharmacy and multi-specialty physician practices. The Company’s physician practices include its owned and operated physician practices pursuant to long-term management service agreements. The Company’s Optical Services segment consists of an optical laboratory, an optical products group purchasing organization.

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