Diversicare Healthcare Services (NASDAQ:DVCR) and The Ensign Group (NASDAQ:ENSG) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
This table compares Diversicare Healthcare Services and The Ensign Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diversicare Healthcare Services||-1.21%||-86.44%||-4.00%|
|The Ensign Group||3.61%||15.61%||7.33%|
Diversicare Healthcare Services pays an annual dividend of $0.22 per share and has a dividend yield of 3.6%. The Ensign Group pays an annual dividend of $0.18 per share and has a dividend yield of 0.5%. The Ensign Group pays out 15.0% of its earnings in the form of a dividend. The Ensign Group has increased its dividend for 10 consecutive years.
This is a breakdown of current recommendations for Diversicare Healthcare Services and The Ensign Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diversicare Healthcare Services||0||0||0||0||N/A|
|The Ensign Group||0||1||6||0||2.86|
The Ensign Group has a consensus target price of $37.57, suggesting a potential upside of 0.32%. Given The Ensign Group’s higher probable upside, analysts clearly believe The Ensign Group is more favorable than Diversicare Healthcare Services.
Risk and Volatility
Diversicare Healthcare Services has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, The Ensign Group has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Insider & Institutional Ownership
19.5% of Diversicare Healthcare Services shares are owned by institutional investors. Comparatively, 84.6% of The Ensign Group shares are owned by institutional investors. 38.7% of Diversicare Healthcare Services shares are owned by insiders. Comparatively, 6.0% of The Ensign Group shares are owned by 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.
Earnings and Valuation
This table compares Diversicare Healthcare Services and The Ensign Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diversicare Healthcare Services||$574.79 million||0.07||-$4.82 million||N/A||N/A|
|The Ensign Group||$1.85 billion||1.05||$40.47 million||$1.20||31.21|
The Ensign Group has higher revenue and earnings than Diversicare Healthcare Services.
The Ensign Group beats Diversicare Healthcare Services on 11 of the 14 factors compared between the two stocks.
About Diversicare Healthcare Services
Diversicare Healthcare Services, Inc. provides post-acute care services to skilled nursing center, patients, and residents primarily in the Southeast, Midwest, and Southwest United States. The company offers skilled nursing health care services, including nutrition, recreational therapy, social, housekeeping, and laundry services; the delivery of ancillary medical services at the nursing centers; rehabilitation therapy services, such as audiology, speech, occupational, and physical therapies; and medical supplies, nutritional support, infusion therapies, and related clinical services. As of March 1, 2018, it operated 76 nursing centers with 8,945 licensed nursing beds. The company was formerly known as Advocat Inc. and changed its name to Diversicare Healthcare Services, Inc. in March 2013. Diversicare Healthcare Services, Inc. was founded in 1994 and is based in Brentwood, Tennessee.
About The Ensign Group
The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses in the United States. It operates through three segments: Transitional and Skilled Services; Assisted and Independent Living Services; and Home Health and Hospice Services. The Transitional and Skilled Services segment offers a range of medical, nursing, rehabilitative, and pharmacy services, as well as routine services, including daily dietary, social, and recreational services to Medicaid, private pay, managed care, and Medicare payors. The Assisted and Independent Living Services segment provides residential accommodations, activities, meals, security, housekeeping, and assistance in the activities of daily living to independent seniors. The Home Health and Hospice Services segment offers nursing, speech, occupational and physical therapists, medical social workers, and certified home health aide services; and hospice care services, such as physical, spiritual, and psychosocial services comprising palliative and clinical care, education, and counseling for terminally ill individuals and their families. The company also provides mobile ancillary services that include digital x-ray, ultrasound, electrocardiograms, sub-acute services, and patient transportation. As of February 8, 2018, it had 232 healthcare facilities, 22 hospice agencies, 20 home health agencies, and 4 home care businesses in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska, Oregon, Wisconsin, Kansas, South Carolina, and Oklahoma. The company was founded in 1999 and is based in Mission Viejo, California.
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