Contrasting HCA Holdings (HCA) and Its Competitors

HCA Holdings (NYSE: HCA) is one of 51 publicly-traded companies in the “Healthcare Facilities & Services” industry, but how does it contrast to its peers? We will compare HCA Holdings to related companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, valuation and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
HCA Holdings 6.64% -48.08% 7.90%
HCA Holdings Competitors 6.81% 0.53% 0.64%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
HCA Holdings $42.27 billion $8.20 billion 10.13
HCA Holdings Competitors $5.54 billion $852.27 million 23.21

HCA Holdings has higher revenue and earnings than its peers. HCA Holdings 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.

Risk & Volatility

HCA Holdings has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, HCA Holdings’ peers have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for HCA Holdings and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCA Holdings 0 5 15 0 2.75
HCA Holdings Competitors 201 1349 1897 35 2.51

HCA Holdings presently has a consensus target price of $89.63, indicating a potential upside of 18.48%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 4.85%. Given HCA Holdings’ stronger consensus rating and higher possible upside, equities research analysts clearly believe HCA Holdings is more favorable than its peers.

Insider and Institutional Ownership

74.7% of HCA Holdings shares are owned by institutional investors. Comparatively, 75.7% of shares of all “Healthcare Facilities & Services” companies are owned by institutional investors. 2.9% of HCA Holdings shares are owned by company insiders. Comparatively, 13.4% of shares of all “Healthcare Facilities & Services” companies 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.

Summary

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

About HCA Holdings

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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