Kindred Healthcare (NYSE: KND) and China Cord Blood Corporation (NYSE:CO) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Earnings & Valuation

This table compares Kindred Healthcare and China Cord Blood Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kindred Healthcare $7.08 billion 0.08 $470.57 million ($12.82) -0.53
China Cord Blood Corporation $124.21 million 10.16 $53.01 million $0.29 38.35

Kindred Healthcare has higher revenue and earnings than China Cord Blood Corporation. Kindred Healthcare is trading at a lower price-to-earnings ratio than China Cord Blood Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Kindred Healthcare and China Cord Blood Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kindred Healthcare 3 4 1 0 1.75
China Cord Blood Corporation 0 0 0 0 N/A

Kindred Healthcare presently has a consensus target price of $8.71, suggesting a potential upside of 28.15%. Given Kindred Healthcare’s higher probable upside, equities research analysts plainly believe Kindred Healthcare is more favorable than China Cord Blood Corporation.

Volatility and Risk

Kindred Healthcare has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, China Cord Blood Corporation has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

88.1% of Kindred Healthcare shares are held by institutional investors. Comparatively, 13.3% of China Cord Blood Corporation shares are held by institutional investors. 3.0% of Kindred Healthcare shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 3.5%. China Cord Blood Corporation does not pay a dividend. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend.

Profitability

This table compares Kindred Healthcare and China Cord Blood Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kindred Healthcare -16.31% 3.49% 0.53%
China Cord Blood Corporation 22.07% 8.64% 3.50%

Summary

Kindred Healthcare beats China Cord Blood Corporation on 9 of the 15 factors compared between the two stocks.

About Kindred Healthcare

Kindred Healthcare, Inc., incorporated on March 27, 1998, is a healthcare services company. The Company, through its subsidiaries, operates transitional care (TC) hospitals, a home health, hospice and community care business, inpatient rehabilitation hospitals (IRFs), a contract rehabilitation services business, nursing centers and assisted living facilities across the United States. The Company operates through divisions: the Kindred at Home division, the hospital division, the Kindred Rehabilitation Services division and the nursing center division. These divisions represent six segments: home health services, hospice services, hospitals, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The home health services and hospice services operating segments are contained within the Kindred at Home division while the Kindred Hospital Rehabilitation Services and RehabCare operating segments are both contained within the Kindred Rehabilitation Services division.

About China Cord Blood Corporation

China Cord Blood Corporation is a provider of cord blood banking services in China. The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China. It provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. It also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The Company provides cord blood processing and storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies, such as cord blood transplants. It also preserves cord blood units donated by the public; provides matching services on such donated units, and delivers matching units to patients in need of transplants. As of March 31, 2016, the Company had three operating cord blood banks.

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