Critical Contrast: HCA (NYSE:HCA) & Its Competitors

HCA (NYSE: HCA) is one of 44 public companies in the “Healthcare Facilities & Services” industry, but how does it weigh in compared to its peers? We will compare HCA to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares HCA and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCA 6.13% -47.16% 7.23%
HCA Competitors 12.52% 0.44% 1.40%

Analyst Ratings

This is a summary of recent ratings and recommmendations for HCA and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCA 0 5 17 0 2.77
HCA Competitors 206 1406 1930 35 2.50

HCA presently has a consensus price target of $89.84, indicating a potential upside of 6.61%. As a group, “Healthcare Facilities & Services” companies have a potential upside of 0.06%. Given HCA’s stronger consensus rating and higher probable upside, equities analysts plainly believe HCA is more favorable than its peers.

Risk and Volatility

HCA has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, HCA’s peers have a beta of 0.90, meaning that their average share price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

75.4% of HCA shares are held by institutional investors. Comparatively, 75.8% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 2.9% of HCA shares are held by insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares HCA and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
HCA $41.49 billion $2.89 billion 11.99
HCA Competitors $6.37 billion $198.65 million 466.50

HCA has higher revenue and earnings than its peers. HCA is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

HCA peers beat HCA on 7 of the 13 factors compared.

HCA Company Profile

HCA Healthcare, Inc., formerly HCA Holdings, Inc., is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. As of December 31, 2016, the Company operated in two geographically organized groups, including the National and American Groups. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. As of December 31, 2016, the American Group included 80 hospitals, which were located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. As of December 31, 2016, the Company operated six hospitals in England. The Company owns, manages or operates hospitals, freestanding surgery centers and freestanding emergency care facilities, walk-in clinics, diagnostic and imaging centers, among others.

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