HCA vs UHS

For growth investors, Universal Health Services, Inc.

(UHS) is the stronger pick with 9. 7% revenue growth year-over-year, versus 7. 1% for HCA Healthcare, Inc. (HCA). Universal Health Services, Inc. (UHS) offers the better valuation at 7. 3x trailing P/E (7. 2x forward), making it the more compelling value choice. Analysts rate HCA Healthcare, Inc. (HCA) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Universal Health Services, Inc.

(UHS) is the cheapest at 7. 3x versus HCA Healthcare, Inc. at 15. 1x. On forward P/E, Universal Health Services, Inc. is actually cheaper at 7. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Universal Health Services, Inc. wins at 0. 45x versus HCA Healthcare, Inc. 's 0. 68x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, HCA Healthcare, Inc.

(HCA) delivered a total return of +111. 1%, compared to +11. 7% for Universal Health Services, Inc. (UHS). Over 10 years, the gap is even starker: HCA returned +451. 4% versus UHS's +30. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), HCA Healthcare, Inc.

(HCA) is the lower-risk stock at 0. 29β versus Universal Health Services, Inc. 's 0. 60β — meaning UHS is approximately 111% more volatile than HCA relative to the S&P 500.

By revenue growth (latest reported year), Universal Health Services, Inc.

(UHS) is pulling ahead at 9. 7% versus 7. 1% for HCA Healthcare, Inc. (HCA). On earnings-per-share growth, the picture is similar: Universal Health Services, Inc. grew EPS 37. 3% year-over-year, compared to 29. 0% for HCA Healthcare, Inc.. Over a 3-year CAGR, UHS leads at 9. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

HCA Healthcare, Inc.

(HCA) is the more profitable company, earning 9. 0% net margin versus 8. 6% for Universal Health Services, Inc. — meaning it keeps 9. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCA leads at 15. 8% versus 11. 5% for UHS. At the gross margin level — before operating expenses — UHS leads at 90. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Universal Health Services, Inc. (UHS) is the more undervalued stock at a PEG of 0. 45x versus HCA Healthcare, Inc. 's 0. 68x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Universal Health Services, Inc. (UHS) trades at 7. 2x forward P/E versus 14. 2x for HCA Healthcare, Inc. — 7. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UHS: 37. 4% to $231. 50.

All stocks in this comparison pay dividends.

HCA Healthcare, Inc. (HCA) offers the highest yield at 0. 7%, versus 0. 5% for Universal Health Services, Inc. (UHS).

For long-horizon retirement investors, HCA Healthcare, Inc.

(HCA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 29), 0. 7% yield, +451. 4% 10Y return). Both have compounded well over 10 years (HCA: +451. 4%, UHS: +30. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

HCA pays a dividend while UHS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.