Mednax Story

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MD -- USA Stock  

USD 15.37  0.04  0.26%

It looks like Ensign will continue to recover much faster as its share price surged up 0.28% today to Mednax's 0.7411%. While many traders are getting carried away by overanalyzing competition within healthcare space, it is quite reasonable to digest both, Mednax and Ensign as potential shorter-term investments. We are going to discuss some of the competitive aspects of both Mednax and Ensign.
Published over a month ago
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Should I short all of Ensign and Mednax?
By analyzing existing basic indicators between Mednax and Ensign, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Ensign with a short position in Mednax. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Mednax has an asset utilization ratio of 77.19 percent. This indicates that the company is making $0.77 for each dollar of assets. An increasing asset utilization means that Mednax Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Mednax or Ensign is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Mednax's Liquidity

Mednax financial leverage refers to using borrowed capital as a funding source to finance Mednax Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mednax financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Mednax's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Mednax, but it might be worth checking our own buy vs. sell analysis

Correlation Between Mednax and Ensign Group

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Mednax together with similar or unrelated positions with a negative correlation. For example, you can also add Ensign to your portfolio. If Ensign is not perfectly correlated to Mednax it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Mednax for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between MD and ENSG for more information.

Breaking down Mednax Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Mednax revenue. Based on the latest financial disclosure, Mednax Inc reported 3.51 B of revenue. This is 53.98% lower than that of the Healthcare sector and significantly higher than that of the Medical Care Facilities industry. The revenue for all United States stocks is 62.8% higher than that of Mednax Inc. As for Ensign we see revenue of 2.15 B, which is much higher than that of the Medical Care Facilities

Mednax3.51 Billion
Sector0.0
Ensign2.15 Billion
3.5 B
Mednax
Sector
2.1 B
Ensign

Possible August bounce-back of Mednax?

Semi variance is down to 13.91. It may indicate a possible volatility dip. Mednax Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Mednax Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Mednax future alpha.

Our Conclusion on Mednax

Although some other companies within the medical care facilities industry are still a little expensive, even after the recent corrections, Mednax may offer a potential longer-term growth to shareholders. Taking everything into account, as of the 30th of July 2020, our analysis shows that Mednax actively responds to the market. The firm is overvalued and projects below average probability of distress for the next 2 years. Our ongoing 30 days buy-hold-sell recommendation on the firm is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Mednax Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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