HCA Healthcare (NYSE:HCA) & Option Care Health (NASDAQ:OPCH) Head-To-Head Analysis

Option Care Health (NASDAQ:OPCH) and HCA Healthcare (NYSE:HCA) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Volatility and Risk

Option Care Health has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, HCA Healthcare has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings 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	0	2.57

Option Care Health currently has a consensus price target of $29.92, suggesting a potential upside of 23.14%. HCA Healthcare has a consensus price target of $462.64, suggesting a potential upside of 7.01%. Given Option Care Health’s higher probable upside, analysts clearly believe Option Care Health is more favorable than HCA Healthcare.

Valuation and Earnings

This table compares Option Care Health and HCA Healthcare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Option Care Health	$5.65 billion	0.64	$207.59 million	$1.33	18.27
HCA Healthcare	$75.60 billion	1.24	$6.78 billion	$29.87	14.47

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.

Insider and Institutional Ownership

98.0% 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 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 company will outperform the market over the long term.

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 9 of the 14 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.