HCA Holdings (NYSE: HCA) and Community Health Systems (NYSE:CYH) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Volatility and Risk
HCA Holdings has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
Valuation & Earnings
This table compares HCA Holdings and Community Health Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HCA Holdings||$42.27 billion||0.66||$8.20 billion||$7.47||10.31|
|Community Health Systems||$17.48 billion||0.05||$1.78 billion||($5.71)||-1.25|
HCA Holdings has higher revenue and earnings than Community Health Systems. Community Health Systems is trading at a lower price-to-earnings ratio than HCA Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for HCA Holdings and Community Health Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Health Systems||4||12||1||0||1.82|
HCA Holdings presently has a consensus target price of $92.60, indicating a potential upside of 20.18%. Community Health Systems has a consensus target price of $7.52, indicating a potential upside of 5.46%. Given HCA Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe HCA Holdings is more favorable than Community Health Systems.
Insider & Institutional Ownership
73.8% of HCA Holdings shares are held by institutional investors. Comparatively, 94.7% of Community Health Systems shares are held by institutional investors. 2.9% of HCA Holdings shares are held by company insiders. Comparatively, 4.7% of Community Health Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares HCA Holdings and Community Health Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Health Systems||-3.63%||0.07%||0.01%|
HCA Holdings beats Community Health Systems on 9 of the 13 factors compared between the two stocks.
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.
Community Health Systems Company Profile
Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.
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