Critical Analysis: HCA Holdings (HCA) and Its Rivals
HCA Holdings (NYSE: HCA) is one of 50 public companies in the “Healthcare Facilities & Services” industry, but how does it contrast to its rivals? We will compare HCA Holdings to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.
Insider & Institutional Ownership
73.7% of HCA Holdings shares are owned by institutional investors. Comparatively, 72.4% 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, 13.9% of shares of all “Healthcare Facilities & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares HCA Holdings and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|HCA Holdings||$42.27 billion||$8.20 billion||10.81|
|HCA Holdings Competitors||$5.43 billion||$855.44 million||37.50|
HCA Holdings has higher revenue and earnings than its rivals. HCA Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares HCA Holdings and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|HCA Holdings Competitors||7.02%||0.70%||0.65%|
This is a breakdown of current ratings and recommmendations for HCA Holdings and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|HCA Holdings Competitors||190||1294||1829||32||2.51|
HCA Holdings currently has a consensus target price of $90.95, suggesting a potential upside of 12.63%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 5.09%. Given HCA Holdings’ stronger consensus rating and higher possible upside, equities analysts plainly believe HCA Holdings is more favorable than its rivals.
Volatility and Risk
HCA Holdings has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, HCA Holdings’ rivals have a beta of 1.01, suggesting that their average stock price is 1% more volatile than the S&P 500.
HCA Holdings beats its rivals on 7 of the 13 factors compared.
HCA Holdings 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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