Brookdale Senior Living (NYSE: BKD) and Genesis Healthcare (NYSE:GEN) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitabiliy.

Risk and Volatility

Brookdale Senior Living has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Genesis Healthcare has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookdale Senior Living 1 0 5 0 2.67
Genesis Healthcare 1 1 1 0 2.00

Brookdale Senior Living presently has a consensus price target of $18.67, indicating a potential upside of 44.70%. Genesis Healthcare has a consensus price target of $2.65, indicating a potential upside of 87.94%. Given Genesis Healthcare’s higher probable upside, analysts clearly believe Genesis Healthcare is more favorable than Brookdale Senior Living.

Institutional & Insider Ownership

14.4% of Genesis Healthcare shares are owned by institutional investors. 1.3% of Brookdale Senior Living shares are owned by insiders. Comparatively, 57.6% of Genesis Healthcare shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Brookdale Senior Living -10.14% 5.85% 1.38%
Genesis Healthcare -1.27% -0.81% -0.34%

Earnings and Valuation

This table compares Brookdale Senior Living and Genesis Healthcare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookdale Senior Living $4.19 billion 0.57 $808.61 million ($2.66) -4.85
Genesis Healthcare $5.54 billion 0.02 $503.52 million N/A N/A

Brookdale Senior Living has higher revenue, but lower earnings than Genesis Healthcare.

Summary

Brookdale Senior Living beats Genesis Healthcare on 7 of the 12 factors compared between the two stocks.

About Brookdale Senior Living

Brookdale Senior Living Inc. operates senior living communities in the United States. The Company operates independent living, assisted living and dementia-care communities, and continuing care retirement centers (CCRCs). It operates through five segments: Retirement Centers; Assisted Living; CCRCs-Rental; Brookdale Ancillary Services and Management Services. The Retirement Centers segment includes owned or leased communities for middle to upper income seniors. The Assisted Living segment includes owned or leased communities that offer housing and round the clock assistance with activities of daily life to mid-acuity frail and elderly residents. The CCRCs-Rental segment includes leased communities that offer living arrangements to accommodate physical ability and health. The Brookdale Ancillary Services segment includes outpatient therapy, home health and hospice services, as well as education and wellness programs. The Management Services segment includes communities operated by it.

About Genesis Healthcare

Genesis Healthcare, Inc. is a holding company that provides post-acute care. The Company operates through three segments: inpatient services, which includes the operation of skilled nursing facilities and assisted or senior living facilities; rehabilitation therapy services, which includes its integrated and third-party rehabilitation and respiratory therapy services, and all other services. As of December 31, 2016, the Company offered inpatient services through its network of 499 skilled nursing and assisted/senior living facilities across 34 states, consisting of 473 skilled nursing facilities and 26 stand-alone assisted/senior living facilities. Its services focus primarily on the medical and physical issues facing elderly patients and are provided by its skilled nursing companies, assisted or senior living communities, integrated and third-party rehabilitation therapy business, and other ancillary services.

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