HCA Healthcare (NYSE:HCA – Get Free Report) and Pediatrix Medical Group (NYSE:MD – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
62.7% of HCA Healthcare shares are held by institutional investors. Comparatively, 97.7% of Pediatrix Medical Group shares are held by institutional investors. 1.5% of HCA Healthcare shares are held by company insiders. Comparatively, 1.8% of Pediatrix Medical Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for HCA Healthcare and Pediatrix Medical Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HCA Healthcare | 1 | 8 | 15 | 0 | 2.58 |
| Pediatrix Medical Group | 0 | 5 | 1 | 0 | 2.17 |
Profitability
This table compares HCA Healthcare and Pediatrix Medical Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HCA Healthcare | 8.77% | -244.79% | 11.10% |
| Pediatrix Medical Group | 8.96% | 20.05% | 8.15% |
Earnings & Valuation
This table compares HCA Healthcare and Pediatrix Medical Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HCA Healthcare | $78.01 billion | 1.19 | $6.78 billion | $29.87 | 14.34 |
| Pediatrix Medical Group | $1.91 billion | 1.09 | $165.39 million | $2.09 | 12.24 |
HCA Healthcare has higher revenue and earnings than Pediatrix Medical Group. Pediatrix Medical Group is trading at a lower price-to-earnings ratio than HCA Healthcare, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
HCA Healthcare has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Pediatrix Medical Group has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
Summary
HCA Healthcare beats Pediatrix Medical Group on 10 of the 14 factors compared between the two stocks.
About HCA Healthcare
HCA Healthcare, Inc., through its subsidiaries, owns and operates hospitals and related healthcare entities in the United States. It operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. The company also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities. In addition, it operates behavioral hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, adolescent and adult alcohol, drug abuse treatment, and counseling services. The company was formerly known as HCA Holdings, Inc. HCA Healthcare, Inc. was founded in 1968 and is headquartered in Nashville, Tennessee.
About Pediatrix Medical Group
Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.
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