Question
I need to compare two healthcare companies using the information provided in the tables below. I can't determine what factors lead me to which company
I need to compare two healthcare companies using the information provided in the tables below. I can't determine what factors lead me to which company is more financially sound overall. I read that a price to book ratio of around one or below is considered a good thing but then was shocked to see that HCA has a price to book ratio of 52.6 one year. Does that indicate something very bad? How can I tell which company is better financially overall using the information provided? Also, what does the Price/Earnings to Growth indicate as far as financial stability or outlook for the future?
HCA Healthcare
2021 | 2020 | 2019 | |
Price-Earnings Ratio | 12.1 | 14.88 | 14.40 |
Price-to-Book Ratio | 52.6 | 19.09 | 0 |
Book Value Per Share | $4.87 | $8.52 | $-1.67 |
Earnings Per Share | $21.16 | $10.93 | $10.07 |
Price/Earnings-to-Growth | .11 | .15 | - |
Stock Market Price | 256.22 | 162.69 | 145.15 |
ABC Healthcare
2021 | 2020 | 2019 | |
Price-Earnings Ratio | 12.1 | 10.63 | 9.14 |
Price-to-Book Ratio | .42 | .40 | .37 |
Book Value Per Share | $199.1 | $209.05 | $226 |
Earnings Per Share | $6.91 | $7.87 | $9.15 |
Price/Earnings-to-Growth | -1 | -.1 | - |
Stock Market Price | 83.62 | 83.62 | 83.62 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
