Genesis Healthcare (NYSE: GEN) and Kindred Healthcare (NYSE:KND) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitabiliy.
Volatility & Risk
Genesis Healthcare has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.
Kindred Healthcare pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. Genesis Healthcare does not pay a dividend. Kindred Healthcare pays out -6.1% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Genesis Healthcare and Kindred Healthcare, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Genesis Healthcare presently has a consensus target price of $2.65, indicating a potential upside of 39.47%. Kindred Healthcare has a consensus target price of $9.75, indicating a potential downside of 8.88%. Given Genesis Healthcare’s higher probable upside, equities research analysts plainly believe Genesis Healthcare is more favorable than Kindred Healthcare.
Earnings and Valuation
This table compares Genesis Healthcare and Kindred Healthcare’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Genesis Healthcare||$5.54 billion||0.03||$503.52 million||N/A||N/A|
|Kindred Healthcare||$7.15 billion||0.13||$520.04 million||($7.88)||-1.36|
Kindred Healthcare has higher revenue and earnings than Genesis Healthcare.
This table compares Genesis Healthcare and Kindred Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
14.4% of Genesis Healthcare shares are owned by institutional investors. Comparatively, 90.2% of Kindred Healthcare shares are owned by institutional investors. 73.3% of Genesis Healthcare shares are owned by insiders. Comparatively, 3.0% of Kindred Healthcare shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Kindred Healthcare beats Genesis Healthcare on 11 of the 14 factors compared between the two stocks.
About Genesis Healthcare
Genesis Healthcare, Inc. is a holding company that provides post-acute care. The Company operates through three segments: inpatient services, which includes the operation of skilled nursing facilities and assisted or senior living facilities; rehabilitation therapy services, which includes its integrated and third-party rehabilitation and respiratory therapy services, and all other services. As of December 31, 2016, the Company offered inpatient services through its network of 499 skilled nursing and assisted/senior living facilities across 34 states, consisting of 473 skilled nursing facilities and 26 stand-alone assisted/senior living facilities. Its services focus primarily on the medical and physical issues facing elderly patients and are provided by its skilled nursing companies, assisted or senior living communities, integrated and third-party rehabilitation therapy business, and other ancillary services.
About Kindred Healthcare
Kindred Healthcare, Inc. is a healthcare services company. The Company, through its subsidiaries, operates transitional care (TC) hospitals, a home health, hospice and community care business, inpatient rehabilitation hospitals (IRFs), a contract rehabilitation services business, nursing centers and assisted living facilities across the United States. The Company operates through four divisions: the Kindred at Home division, the hospital division, the Kindred Rehabilitation Services division and the nursing center division. These divisions represent six segments: home health services, hospice services, hospitals, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The home health services and hospice services operating segments are contained within the Kindred at Home division while the Kindred Hospital Rehabilitation Services and RehabCare operating segments are both contained within the Kindred Rehabilitation Services division.
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