One of these companies has a market cap 5 times larger than the other. Which one do you think it is (using only the below information)?
Cano Health $CANO
Market Cap $929 million
Oak Street Health $OSH
We have some smart investors on Commonstock! It's hard to value a company on the one-quarter report with not a lot of other information, but I feel Cano might be trading at a discount.
The biggest difference is the net change in cash. Cano has negative cash and Oak Street Health has positive cash.
That is actually the biggest reason why the stocks are trading at such a parity. However, Cano's CEO, Dr. Marlow Hernandez, said they will be focusing on free cash flow and limiting expenses on their latest earnings report.
I wonder if it's too late...