HCA (NYSE:HCA) versus Diplomat Pharmacy (DPLO) Head to Head Survey

Diplomat Pharmacy (NYSE: DPLO) and HCA (NYSE:HCA) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Diplomat Pharmacy and HCA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diplomat Pharmacy $4.41 billion 0.28 $28.27 million $0.10 182.10
HCA $41.49 billion 0.72 $2.89 billion $7.03 11.99

HCA has higher revenue and earnings than Diplomat Pharmacy. HCA is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Diplomat Pharmacy has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, HCA has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Insider and Institutional Ownership

72.5% of Diplomat Pharmacy shares are owned by institutional investors. Comparatively, 75.4% of HCA shares are owned by institutional investors. 30.2% of Diplomat Pharmacy shares are owned by company insiders. Comparatively, 2.9% of HCA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Diplomat Pharmacy and HCA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 0 5 3 0 2.38
HCA 0 5 17 0 2.77

Diplomat Pharmacy presently has a consensus target price of $19.94, indicating a potential upside of 9.49%. HCA has a consensus target price of $89.84, indicating a potential upside of 6.61%. Given Diplomat Pharmacy’s higher probable upside, analysts plainly believe Diplomat Pharmacy is more favorable than HCA.

Profitability

This table compares Diplomat Pharmacy and HCA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.18% 8.30% 4.70%
HCA 6.13% -47.16% 7.23%

Summary

HCA beats Diplomat Pharmacy on 9 of the 14 factors compared between the two stocks.

Diplomat Pharmacy Company Profile

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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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