[1] Why Are We Comparing FedEx And HCA?
We compare stocks which share one or more similar characteristicsThis is because the decision to invest often come down to finding the best stocks within the ambit of certain characteristics that suit an investment styleWe compare FedEx vs. HCA because they both are Large Cap stocks; for right investment exposure to Large Caps, it makes sense to compare the constituents and pick the best ones
[2] How Do We Arrive At A Decision?
We favor stocks that offer meaningfully greater expected return in the next 3 yearsThese returns are calculated based on our revenue forecast and Price to Sales Ratio (P/S) scenarios consideredSimilar Price To Sales Ratio (P/S) scenarios are considered for both stocks and each scenario is weighted equally for a given stock
[3] How Do We Forecast Revenue?
We have different methodologies for companies negatively impacted by Covid, and for companies not impacted or positively impacted by CovidDifferent methodologies are essential to capture recovery in case of negative impactFor companies negatively impacted by covid, we consider quarterly revenue recovery trajectory to forecast recovery to pre-covid revenue run rate, and beyond recovery point, we apply average annual growth observed in 3 years prior to covid to simulate return to normal conditionsFor companies registering positive revenue growth during covid, we consider average annual growth prior to covid with certain weightage to growth during covid and last 12 months
[4] Can I See More Such Comparisons For FedEx And HCA Peers
Here are some comparisons that you may find useful for FedEx and HCAFedEx vs. United Parcel Service: Industry Competitors, But FedEx Is A Better BetFedEx vs. Amazon: Industry Competitors, But Amazon Is A Better BetHCA vs Anthem: Which Stock Is A Better Investment?HCA vs UnitedHealth Group: Which Stock Is A Better Investment? Find all such comparisons on FedEx Peer Comparisons and HCA Peer Comparisons