Brookdale Senior Living (NYSE: BKD) and Kindred Healthcare (NYSE:KND) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Valuation and Earnings
This table compares Brookdale Senior Living and Kindred Healthcare’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookdale Senior Living||$4.75 billion||0.27||-$571.41 million||($0.78)||-8.65|
|Kindred Healthcare||$6.03 billion||0.13||-$698.35 million||$0.34||26.18|
This table compares Brookdale Senior Living and Kindred Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookdale Senior Living||-12.04%||-8.40%||-1.80%|
Institutional and Insider Ownership
99.8% of Brookdale Senior Living shares are owned by institutional investors. Comparatively, 89.0% of Kindred Healthcare shares are owned by institutional investors. 1.5% of Brookdale Senior Living 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 company is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Brookdale Senior Living and Kindred Healthcare, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookdale Senior Living||0||2||3||0||2.60|
Brookdale Senior Living presently has a consensus target price of $9.40, indicating a potential upside of 39.26%. Kindred Healthcare has a consensus target price of $9.07, indicating a potential upside of 1.93%. Given Brookdale Senior Living’s stronger consensus rating and higher probable upside, research analysts plainly believe Brookdale Senior Living is more favorable than Kindred Healthcare.
Volatility and Risk
Brookdale Senior Living has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
Brookdale Senior Living Company Profile
Brookdale Senior Living Inc. owns and operates senior living communities in the United States. It operates through five segments: Retirement Centers, Assisted Living, CCRCs ? Rental, Brookdale Ancillary Services, and Management Services. The Retirement Centers segment owns or leases communities comprising independent living and assisted living units in a single community that are primarily designed for middle to upper income senior citizens. The Assisted Living 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 life to mid-acuity frail and elderly residents. This segment also operates memory care communities for residents with Alzheimer's disease and other dementias. The CCRCs – Rental segment owns or leases communities that offer various living arrangements and services to accommodate various levels of physical ability and health. The Brookdale Ancillary Services segment provides outpatient therapy, home health, and hospice services; and education and wellness programs to residents of its communities, as well as to other senior living communities. The Management Services segment operates communities under the management agreements. As of December 31, 2017, the company operated 129 retirement center communities with 24,476 units; 822 assisted living communities with 56,718 units; and 72 CCRCs with 19,388 units, as well as owned or leased 794 communities with 66,641 units and provided management services with respect to 229 communities with 33,941 units for third parties or unconsolidated ventures. Brookdale Senior Living Inc. is headquartered in Brentwood, Tennessee.
Kindred Healthcare Company Profile
Kindred Healthcare, Inc. provides healthcare services in the United States. It operates through five segments: Home Health Services, Hospice Services, Hospitals, Kindred Hospital Rehabilitation Services, and RehabCare. The company provides long-term acute care (LTAC) services to post-intensive care and medically complex patients, including the critically ill and suffering from multiple organ system failures most commonly of the cardiovascular, pulmonary, kidney, gastro-intestinal, and cutaneous systems. It also offers home health, hospice, and community care services for patients in various settings comprising their homes, nursing centers, and other residential settings, as well as physician services for patients in home-based settings. In addition, the company operates inpatient rehabilitation hospitals (IRFs) and acute rehabilitation units (ARUs); and provides rehabilitation services, including physical and occupational therapies and speech pathology services to residents and patients of nursing centers, hospitals, outpatient clinics, home health agencies, and assisted living facilities. As of December 31, 2017, it operated 19 IRFs, 99 ARUs, 104 LTAC hospitals, 4 sub-acute units, and 123 outpatient clinics; provided rehabilitative services from 1,616 sites of service in 42 states; and offered Kindred at Home division home health, hospice, and community care services from 608 sites of service in 40 states. The company is headquartered in Louisville, Kentucky.
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