Option Care Health (NASDAQ:OPCH – Get Free Report) and HCA Healthcare (NYSE:HCA – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Insider and Institutional Ownership
98.1% of Option Care Health shares are owned by institutional investors. Comparatively, 62.7% of HCA Healthcare shares are owned by institutional investors. 1.7% of Option Care Health shares are owned by company insiders. Comparatively, 1.5% of HCA Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Option Care Health and HCA Healthcare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Option Care Health | $5.69 billion | 0.61 | $207.59 million | $1.33 | 17.55 |
| HCA Healthcare | $75.60 billion | 1.25 | $6.78 billion | $29.87 | 14.62 |
HCA Healthcare has higher revenue and earnings than Option Care Health. HCA Healthcare is trading at a lower price-to-earnings ratio than Option Care Health, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Option Care Health has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, HCA Healthcare has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Option Care Health and HCA Healthcare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Option Care Health | 0 | 7 | 7 | 0 | 2.50 |
| HCA Healthcare | 1 | 8 | 14 | 1 | 2.62 |
Option Care Health presently has a consensus target price of $29.92, suggesting a potential upside of 28.21%. HCA Healthcare has a consensus target price of $463.70, suggesting a potential upside of 6.18%. Given Option Care Health’s higher probable upside, equities research analysts clearly believe Option Care Health is more favorable than HCA Healthcare.
Profitability
This table compares Option Care Health and HCA Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Option Care Health | 3.68% | 18.74% | 7.25% |
| HCA Healthcare | 8.77% | -244.79% | 11.10% |
Summary
HCA Healthcare beats Option Care Health on 10 of the 15 factors compared between the two stocks.
About Option Care Health
Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.
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.
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