MD vs UHS: Which Is the Better Buy in 2026?
Last updated September 2026
Short answer
UHS is the larger of the two ($10.06B market cap): the incumbent the market prices for continued execution (7.11x forward earnings, beta 1.06). MD is the smaller challenger ($2.15B), actually pricier on forward earnings (10.85x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
MD vs UHS: the tie-breaker metrics
Same yardstick, side by side (as of September 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | MD | UHS | What it tells you |
|---|---|---|---|
| Market cap | $2.15B | $10.06B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 10.85 | 7.11 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 12.67 | 6.96 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.65 | 1.06 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 88% of range | 29% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.38 | 1.34 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: UHS is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how MD and UHS affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MD and UHS share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MD and UHS exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Pediatrix Medical Group (MD) do?
Pediatrix Medical Group (NYSE: MD), founded in 1979 and known as MEDNAX until its 2022 rebrand, provides hospital-based physician staffing and clinical services concentrated in neonatology, maternal-fetal medicine, pediatric cardiology, pediatric critical care, pediatric emergency medicine and related anesthesiology support. Its clinicians largely staff neonatal intensive care units and other hospital departments under contracts with hospital partners, with revenue driven by patient volumes, payer reimbursement, contract administrative fees and revenue-cycle collections.
What does Universal Health Services (UHS) do?
Universal Health Services is a Pennsylvania-based healthcare company that owns and operates acute care hospitals, behavioral health facilities, outpatient centers, and ambulatory surgery locations across the United States and in the United Kingdom. Its two core segments are acute care, which covers general hospitals and emergency and surgical services, and behavioral health, which spans inpatient psychiatric and addiction treatment facilities where UHS is one of the largest operators in the country. The company also expanded its virtual behavioral health reach through the acquisition of Talkspace.
MD vs UHS: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- MD drivers: Pricing and reimbursement strength; Portfolio simplification and debt paydown.
- UHS drivers: Behavioral health scale; Acute care volumes and pricing.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Portfolio restructuring and practice divestitures continue to pressure headline revenue and narrow revenue diversification in a sector with several large, well-capitalized competitors. For UHS, the largest risks are tied to government reimbursement.
MD or UHS: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick MD if you believe its drivers more; UHS if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the MD and UHS guides.
MD vs UHS: the full fundamentals
MD. Pediatrix trades at a low-teens price-to-earnings multiple, well below the roughly 20x-plus average for healthcare-services peers, which reflects modest growth expectations and restructuring drag. Q1 2026 revenue rose about 4% year on year to roughly $476 million while diluted EPS improved to about $0.36 from $0.24. Full-year adjusted EBITDA is guided near $290 million at the midpoint.
UHS. UHS trades at a notably low price-to-earnings multiple, in the high single digits, well below broader market averages and its own longer-run history. That reflects investor caution around reimbursement and policy exposure rather than weak results, since revenue grew about 9.7 percent in 2025 and momentum carried into 2026.
Headline figures (approximate, July 2026): MD shows revenue (ttm) ~$1.93B, q1 2026 net revenue ~$476M, net margin (ttm) ~9%, p/e ratio ~12x; UHS shows revenue (fy2025) ~$17.4B, net income attributable to uhs (fy2025) ~$1.49B, diluted eps (fy2025) ~$23.10, market cap ~$10B.
The bottom line: MD vs UHS
MD and UHS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MD and UHS exposure against your real portfolio. It is not an investment adviser.
Wondering how MD or UHS fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Pediatrix Medical Group with AI
Connect the broker you already use and ask Walnut's AI how MD fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between MD and UHS?
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Pediatrix Medical Group (NYSE: MD), founded in 1979 and known as MEDNAX until its 2022 rebrand, provides hospital-based physician staffing and clinical services concentrated in neonatology, maternal-fetal medicine, pediatric cardiology, pediatric critical care, pediatric emergency medicine and related anesthesiology support. Universal Health Services is a Pennsylvania-based healthcare company that owns and operates acute care hospitals, behavioral health facilities, outpatient centers, and ambulatory surgery locations across the United States and in the United Kingdom. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is MD or UHS the better stock?
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Neither is universally better. UHS is the larger incumbent; MD is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, MD or UHS?
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On forward P/E (as of September 2026), MD trades at 10.85x and UHS at 7.11x, so UHS is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both MD and UHS?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of MD vs UHS?
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MD: Portfolio restructuring and practice divestitures continue to pressure headline revenue and narrow revenue diversification in a sector with several large, well-capitalized competitors. Physician compensation, salaries and staffing costs can squeeze already tight margins if pricing gains slow. Patient volumes have been declining in parts of the business, including maternal-fetal medicine and neonatology, so growth leans heavily on pricing and payer mix rather than demand. The business is exposed to government and commercial reimbursement policy, hospital-contract renewals and concentration in a small set of subspecialties. Any reversal in payer mix or collections would hit results quickly given the thin operating margins. UHS: The largest risks are tied to government reimbursement. A meaningful share of UHS revenue comes from Medicare and Medicaid, so changes to those programs, state Medicaid supplemental payment structures, or federal healthcare policy can move earnings materially. Labor costs, including nursing wages and contract labor, remain a swing factor for margins. The behavioral health segment carries regulatory, staffing, and reputational scrutiny given the nature of inpatient psychiatric care. Rising interest expense on debt and integration risk from acquisitions such as Talkspace add further uncertainty. The persistently low earnings multiple suggests the market is pricing these policy and reimbursement risks even as reported results grow.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MD or UHS; figures are approximate and dated (as of September 2026). Verify current data before investing.