HCA Healthcare (NYSE:HCA) versus CorVel (NASDAQ:CRVL) Critical Review

CorVel (NASDAQ:CRVL – Get Free Report) and HCA Healthcare (NYSE:HCA – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Profitability

This table compares CorVel and HCA Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CorVel 12.02% 30.20% 18.06%
HCA Healthcare 8.61% -198.52% 10.81%

Volatility and Risk

CorVel has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, HCA Healthcare has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for CorVel and HCA Healthcare, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CorVel 0 1 0 0 2.00
HCA Healthcare 1 7 16 0 2.62

HCA Healthcare has a consensus target price of $480.13, suggesting a potential downside of 3.60%. Given HCA Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe HCA Healthcare is more favorable than CorVel.

Institutional and Insider Ownership

51.4% of CorVel shares are owned by institutional investors. Comparatively, 62.7% of HCA Healthcare shares are owned by institutional investors. 39.7% of CorVel shares are owned by insiders. Comparatively, 1.5% of HCA Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares CorVel and HCA Healthcare”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CorVel $958.53 million 4.55 $110.34 million $2.38 36.37
HCA Healthcare $75.60 billion 1.38 $6.78 billion $30.18 16.50

HCA Healthcare has higher revenue and earnings than CorVel. HCA Healthcare is trading at a lower price-to-earnings ratio than CorVel, indicating that it is currently the more affordable of the two stocks.

Summary

HCA Healthcare beats CorVel on 8 of the 14 factors compared between the two stocks.

About CorVel

(Get Free Report)

CorVel Corporation provides workers’ compensation and healthcare cost-management services to employers, insurers, and public entities. Its offerings are designed to help clients manage claims, coordinate care, and control healthcare-related costs. The company’s services include claims administration, medical bill review, provider network access, utilization review, case management, and pharmacy benefit management. CorVel also supports disability and liability claims management. Founded in 1987, CorVel serves customers across the United States through a combination of technology platforms and service teams.

About HCA Healthcare

(Get Free Report)

HCA Healthcare is a healthcare services company that operates hospitals and other care facilities. Its services include inpatient and outpatient care, emergency treatment, surgery, diagnostic services and specialized care across areas such as cancer and cardiovascular medicine. The company serves patients in the United States and the United Kingdom through its network of hospitals and outpatient facilities, including surgery centers, urgent care clinics and physician practices. Founded in 1968, HCA Healthcare is headquartered in Nashville, Tennessee.

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