Critical Survey: Kindred Healthcare (KND) vs. Brookdale Senior Living (NYSE:BKD)

Kindred Healthcare (NYSE: KND) and Brookdale Senior Living (NYSE:BKD) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Volatility & Risk

Kindred Healthcare has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kindred Healthcare and Brookdale Senior Living’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kindred Healthcare $6.03 billion 0.14 -$698.35 million $0.34 26.32
Brookdale Senior Living $4.75 billion 0.30 -$571.41 million ($0.78) -9.62

Brookdale Senior Living has lower revenue, but higher earnings than Kindred Healthcare. Brookdale Senior Living is trading at a lower price-to-earnings ratio than Kindred Healthcare, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

88.4% of Kindred Healthcare shares are held by institutional investors. 3.0% of Kindred Healthcare shares are held by company insiders. Comparatively, 1.5% of Brookdale Senior Living shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Kindred Healthcare and Brookdale Senior Living’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kindred Healthcare -11.56% 11.38% 0.93%
Brookdale Senior Living -19.13% -10.81% -2.10%

Analyst Recommendations

This is a summary of current ratings and target prices for Kindred Healthcare and Brookdale Senior Living, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kindred Healthcare 1 4 0 0 1.80
Brookdale Senior Living 0 2 3 0 2.60

Kindred Healthcare currently has a consensus price target of $8.00, indicating a potential downside of 10.61%. Brookdale Senior Living has a consensus price target of $9.40, indicating a potential upside of 25.33%. Given Brookdale Senior Living’s stronger consensus rating and higher probable upside, analysts clearly believe Brookdale Senior Living is more favorable than Kindred Healthcare.

Summary

Kindred Healthcare beats Brookdale Senior Living on 8 of the 14 factors compared between the two stocks.

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.

Brookdale Senior Living Company Profile

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