Sotera Health Co vs UNIVERSAL HEALTH SERVICES, INC., two Medical Care stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Sotera's balance sheet carries 3.46 turns of debt against equity, Universal Health's 0.72, and the market has decided the heavier load deserves seven times the multiple: 42.4 times earnings against 6.1. The premium is for the franchise, ethylene-oxide sterilization with near-monopoly switching costs and a 52.5% gross margin; the discount is for hospital margins the market treats as borrowed. Current returns disagree with the pricing: UHS earns 20.2% on equity against Sotera's leverage-assisted 18.9%, and 9.7% on assets against 3.6%, while yielding five times the free cash, 10.2% against 1.9%. Moat with mortgage against margins with suspicion; the price gap says the mortgage worries the market less.
Comparison updated 2026-07-10.
| Metric | SHC | UHS |
|---|---|---|
| Price | $17.38 | $145.68 |
| Market cap | $5.0B | $9.0B |
| Sector | Medical Care | Medical Care |
| Stage | Mature | Mature |
| Implied growth (priced in) | +15.4% | — |
| P/E | 42.4 | 6.1 |
| P/B | 8.03 | 1.19 |
| P/S | 4.20 | 0.51 |
| EV/EBITDA | 271.2 | 5.4 |
| Revenue growth | +7.5% | +10.4% |
| Gross margin | 52.5% | — |
| Operating margin | — | 11.2% |
| Net margin | 9.9% | 8.6% |
| Return on equity | 18.9% | 20.2% |
| Return on assets | 3.6% | 9.7% |
| Return on invested capital | — | 12.0% |
| FCF yield | 1.9% | 10.2% |
| Dividend yield | — | 0.6% |
| Debt / equity | 3.46 | 0.72 |
| Current ratio | 2.82 | 1.08 |
| Altman Z (solvency) | 1.44 | 7.26 |
| Piotroski F (quality) | 4 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.