Universal Health Services Is A Huge Bargain At 8x Earnings Vs HCA At 16x

Thomas LottInvesting Group LeaderFollow5ShareSavePlay(14min)CommentsSummaryUniversal Health Services (UHS) trades at a decade-low valuation despite strong EPS growth and robust capital returns.UHS guides for 2026 revenue, EBITDA, and EPS growth of 7%, 5%, and 9% at the midpoint, outpacing peer HCA.Key risks include ACA subsidy expirations and Medicaid reimbursement cuts, but downside appears priced in at current levels.Significant buybacks, cost controls, and AI-driven efficiencies provide technical and operational support; I see an asymmetric risk/reward favoring upside.This idea was discussed in more depth with members of my private investing community, Cash Flow Compounders. Learn More » Nicolae Popescu/iStock via Getty Images Summary Universal Health Services (UHS), an operator of acute care hospitals and mental health facilities with earnings roughly evenly split between the two divisions, has seen its stock price struggle of late. We’ve discussed UHS several times: we purchased itThis article was written byThomas Lott13.27K FollowersFollowThomas Lott started as a portfolio manager at a hedge fund in 2003 and has worked as a financial professional for over 30 years. Thomas espouses Graham and Dodd/Buffett style investing, always on the lookout for high-quality equities at attractive valuations. He is a graduate of Vanderbilt University with an MBA from Northwestern's Kellogg School of Management. Thomas leads the investing group Cash Flow Compounders where he aim to find the best companies in the world that are trading at attractive valuations. Features of Learn more include: their exclusive portfolio of compounders, 2-4 in-depth new ideas a month, live chat, and direct access for questions. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of UHS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.