WallStSmart

HCA Holdings Inc (HCA)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HCA Holdings Inc generates 84% more annual revenue ($76.39B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 8.9%. HCA appears more attractively valued with a PEG of 1.29. HCA earns a higher WallStSmart Score of 63/100 (C+).

HCA

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 6.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.71

PM

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.0Quality: 5.3
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCAFair Value (-4.8%)

Margin of Safety

-4.8%

Fair Value

$506.98

Current Price

$435.19

$71.79 premium

UndervaluedFair: $506.98Overvalued
PMSignificantly Overvalued (-48.0%)

Margin of Safety

-48.0%

Fair Value

$115.64

Current Price

$170.99

$55.35 premium

UndervaluedFair: $115.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCA4 strengths · Avg: 9.3/10
Return on EquityProfitability
136.3%10/10

Every $100 of equity generates 136 in profit

Debt/EquityHealth
-8.3310/10

Conservative balance sheet, low leverage

Market CapQuality
$95.17B9/10

Large-cap with strong market position

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

PM3 strengths · Avg: 9.7/10
Market CapQuality
$266.69B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

HCA2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

PM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Free Cash FlowQuality
$-752.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HCA

The strongest argument for HCA centers on Return on Equity, Debt/Equity, Market Cap. PEG of 1.29 suggests the stock is reasonably priced for its growth.

Bull Case : PM

The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 36.0%.

Bear Case : HCA

The primary concerns for HCA are Revenue Growth, Altman Z-Score.

Bear Case : PM

The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.

Key Dynamics to Monitor

HCA profiles as a value stock while PM is a mature play — different risk/reward profiles.

HCA carries more volatility with a beta of 1.19 — expect wider price swings.

PM is growing revenue faster at 9.1% — sustainability is the question.

HCA generates stronger free cash flow (895M), providing more financial flexibility.

Bottom Line

HCA scores higher overall (63/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

HCA Holdings Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 21 states and the United Kingdom.

Visit Website →

Philip Morris International Inc

CONSUMER DEFENSIVE · TOBACCO · USA

Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.

Want to dig deeper into these stocks?