The Ensign Group (NASDAQ:ENSG) and Diversicare Healthcare Services (NASDAQ:DVCR) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Risk and Volatility
The Ensign Group has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Diversicare Healthcare Services has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
This is a breakdown of current ratings for The Ensign Group and Diversicare Healthcare Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Ensign Group||0||1||6||0||2.86|
|Diversicare Healthcare Services||0||0||0||0||N/A|
The Ensign Group presently has a consensus target price of $38.71, indicating a potential downside of 16.20%. Given The Ensign Group’s higher probable upside, equities research analysts clearly believe The Ensign Group is more favorable than Diversicare Healthcare Services.
Valuation & Earnings
This table compares The Ensign Group and Diversicare Healthcare Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Ensign Group||$1.85 billion||1.31||$40.47 million||$1.20||38.50|
|Diversicare Healthcare Services||$574.79 million||0.05||-$4.82 million||N/A||N/A|
The Ensign Group has higher revenue and earnings than Diversicare Healthcare Services.
The Ensign Group pays an annual dividend of $0.18 per share and has a dividend yield of 0.4%. Diversicare Healthcare Services pays an annual dividend of $0.22 per share and has a dividend yield of 4.8%. The Ensign Group pays out 15.0% of its earnings in the form of a dividend. The Ensign Group has raised its dividend for 10 consecutive years.
This table compares The Ensign Group and Diversicare Healthcare Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Ensign Group||3.86%||16.10%||7.75%|
|Diversicare Healthcare Services||-2.42%||-165.82%||-4.28%|
Insider & Institutional Ownership
84.7% of The Ensign Group shares are owned by institutional investors. Comparatively, 19.5% of Diversicare Healthcare Services shares are owned by institutional investors. 6.0% of The Ensign Group shares are owned by company insiders. Comparatively, 38.7% of Diversicare Healthcare Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
The Ensign Group beats Diversicare Healthcare Services on 11 of the 14 factors compared between the two stocks.
The Ensign Group Company Profile
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.
Diversicare Healthcare Services Company Profile
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.
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