An investor is conducting a relative value analysis on global bond issuers in the health care sector. He is trying to decide whether the global health care sector is a sufficiently narrow sector for his analysis. Through his research, he has determined the following:

• Biotech and pharmaceutical companies are active globally across Europe, Asia, and the Americas.

• Health care facilities are typically local in nature and tend to sell into only one of these three regions.

• Medical equipment and devices is a more cyclical business, and many of these firms are part of multi-industry companies in which health care accounts for a smaller fraction of overall company sales.

Describe considerations that the investor can use in determining how to best divide the health care sector into comparable companies.