Healthways (NASDAQ: TVTY) and AAC Holdings (NYSE:AAC) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
64.0% of AAC Holdings shares are owned by institutional investors. 8.4% of Healthways shares are owned by insiders. Comparatively, 37.3% of AAC Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Healthways and AAC Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Healthways and AAC Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Healthways||$529.87 million||2.89||$115.05 million||$2.32||16.77|
|AAC Holdings||$266.82 million||0.92||$30.06 million||($0.20)||-51.00|
Healthways has higher revenue and earnings than AAC Holdings. AAC Holdings is trading at a lower price-to-earnings ratio than Healthways, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Healthways has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, AAC Holdings has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Healthways and AAC Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Healthways currently has a consensus price target of $39.67, suggesting a potential upside of 1.97%. AAC Holdings has a consensus price target of $10.00, suggesting a potential downside of 1.96%. Given Healthways’ stronger consensus rating and higher probable upside, equities analysts plainly believe Healthways is more favorable than AAC Holdings.
Healthways beats AAC Holdings on 10 of the 13 factors compared between the two stocks.
Healthways Company Profile
Tivity Health, Inc., formerly Healthways, Inc., is focused targeted population health for those aged 50 and older. The Company offers three programs: SilverSneakers senior fitness, Prime fitness and WholeHealth Living. The SilverSneakers senior fitness program is offered to members of Medicare Advantage, Medicare Supplement, and Group Retiree plans. The Company also offers Prime fitness, a fitness facility access program, through commercial health plans, employers and insurance exchanges. Its national network of fitness centers delivers both SilverSneakers and Prime fitness. As of December 31, 2016, the Company’s fitness networks encompassed approximately 16,000 participating locations and more than 1,000 alternative locations that provide classes outside of traditional fitness centers. As of December 31, 2016, the Company’s WholeHealth Living network included over 88,000 complementary, alternative, and physical medicine practitioners to serve individuals through health plans.
AAC Holdings Company Profile
AAC Holdings, Inc. is a provider of inpatient and outpatient substance abuse treatment services for individuals with drug and alcohol addiction. The Company performs drug testing and diagnostics laboratory services and provides physician services to its clients. As of June 30, 2016, the Company operated 12 residential substance abuse treatment facilities located throughout the United States, focused on delivering clinical care and treatment solutions across 1,139 beds, which includes 636 licensed detoxification beds, and 18 standalone outpatient centers. In addition, the Company focuses on expanding The Oxford Centre facility. As of June 30, 2016, the Company’s capacity at its Forterus treatment facility was 14 beds. The Company is engaged in deploying research-based treatment programs with structured curricula for detoxification, residential treatment, partial hospitalization and intensive outpatient care. The Company is also an Internet marketer in the addiction treatment industry.
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