Brookdale Senior Living (NYSE:BKD – Get Free Report) and Quest Diagnostics (NYSE:DGX – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Profitability
This table compares Brookdale Senior Living and Quest Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookdale Senior Living | -4.53% | -15,050.32% | -1.09% |
| Quest Diagnostics | 9.53% | 16.21% | 7.41% |
Institutional & Insider Ownership
88.1% of Quest Diagnostics shares are owned by institutional investors. 0.7% of Brookdale Senior Living shares are owned by company insiders. Comparatively, 0.9% of Quest Diagnostics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Brookdale Senior Living and Quest Diagnostics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookdale Senior Living | $3.05 billion | 0.82 | -$262.69 million | ($0.58) | -18.08 |
| Quest Diagnostics | $11.04 billion | 2.50 | $992.00 million | $10.04 | 24.95 |
Quest Diagnostics has higher revenue and earnings than Brookdale Senior Living. Brookdale Senior Living is trading at a lower price-to-earnings ratio than Quest Diagnostics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Brookdale Senior Living and Quest Diagnostics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookdale Senior Living | 1 | 0 | 5 | 2 | 3.00 |
| Quest Diagnostics | 0 | 5 | 3 | 1 | 2.56 |
Brookdale Senior Living presently has a consensus price target of $17.40, indicating a potential upside of 65.95%. Quest Diagnostics has a consensus price target of $248.70, indicating a potential downside of 0.72%. Given Brookdale Senior Living’s stronger consensus rating and higher probable upside, equities analysts clearly believe Brookdale Senior Living is more favorable than Quest Diagnostics.
Volatility and Risk
Brookdale Senior Living has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Summary
Quest Diagnostics beats Brookdale Senior Living on 10 of the 15 factors compared between the two stocks.
About Brookdale Senior Living
Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding, multi-story communities and freestanding, single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company’s residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.
About Quest Diagnostics
Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.
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