Healthcare vs Medicare

Healthcare and Medicare stocks are two distinct sectors within the financial market that operate in the healthcare industry. Healthcare stocks generally refer to companies that provide a wide range of medical services and products, such as pharmaceuticals, hospitals, and medical devices. In contrast, Medicare stocks specifically focus on companies that are involved in the government-funded Medicare program, which provides health insurance for individuals aged 65 and older. Both sectors offer investment opportunities with varying risks and growth potential.

Healthcare or Medicare?

When comparing Healthcare and Medicare, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Healthcare and Medicare.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Healthcare has a dividend yield of -%, while Medicare has a dividend yield of 9.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Healthcare reports a 5-year dividend growth of 0.00% year and a payout ratio of 215.84%. On the other hand, Medicare reports a 5-year dividend growth of -42.00% year and a payout ratio of 153.22%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Healthcare P/E ratio at 59.03 and Medicare's P/E ratio at 31.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Healthcare P/B ratio is 0.93 while Medicare's P/B ratio is 1.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Healthcare has seen a 5-year revenue growth of 1.18%, while Medicare's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Healthcare's ROE at 1.67% and Medicare's ROE at 4.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥6.30 for Healthcare and ر.ق4.60 for Medicare. Over the past year, Healthcare's prices ranged from ¥5.26 to ¥11.61, with a yearly change of 120.72%. Medicare's prices fluctuated between ر.ق3.90 and ر.ق5.70, with a yearly change of 46.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.