HCA Healthcare, Inc. (HCA) vs Tenet Healthcare Corporation (THC)

HCA Healthcare, Inc. and Tenet Healthcare Corporation are both Medical Care Facilities companies. HCA Healthcare, Inc. is the larger, with a market value of $101.4B against $22.2B — 4.6× the size. Tenet Healthcare Corporation trades at the lower P/E: 10.3× against 15.3×. Tenet Healthcare Corporation grew revenue faster over the last twelve months: 9.40% against 7.31%. Tenet Healthcare Corporation has the higher net margin (9.90% vs 8.77%) and the lower return on invested capital (16.1% vs 16.7%). Across the 21 metrics below, Tenet Healthcare Corporation leads on 15 and HCA Healthcare, Inc. on 6.

Valuation

Metric HCA THC Medical Care Facilities median
P/E 15.32 10.28 20.56
P/S 1.29 0.99 0.85
P/B n/m 3.42 2.84
Price to free cash flow 16.83 7.42 13.73
EV/EBITDA 9.44 6.14 10.21
EV/Sales 1.92 1.48 1.32
Earnings yield 6.53% 9.72% 2.25%
Free cash flow yield 5.94% 13.47% 4.16%

Profitability

Metric HCA THC Medical Care Facilities median
Gross margin 85.26% 43.82% 30.78%
Operating margin 15.56% 20.05% 5.74%
Net margin 8.77% 9.90% 2.32%
Free cash flow margin 7.69% 13.35% 5.46%
Return on equity (307.62%) 37.25% 8.76%
Return on assets 11.14% 7.55% 2.18%
Return on invested capital 16.68% 16.09% 5.01%

Growth

Metric HCA THC Medical Care Facilities median
Revenue growth (TTM) 7.31% 9.40% 7.12%
EPS growth (last fiscal year) 28.77% (52.63%) 17.46%
Revenue growth, 5-year CAGR 7.97% 3.85% 9.58%
Net income growth, 5-year CAGR 12.56% 28.67% 0.00%

Health

Metric HCA THC Medical Care Facilities median
Debt to equity (15.49) 2.02 0.37
Current ratio 0.99 1.41 1.20
Net debt to EBITDA 2.91 2.34 1.07

Dividend

Metric HCA THC Medical Care Facilities median
Dividend yield 0.67% — 0.63%
Payout ratio 0.10 — 0.13

Size

Metric HCA THC Medical Care Facilities median
Market cap 101.43b 22.15b 1.47b

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