China Cord Blood Corporation (NYSE: CO) and Kindred Healthcare (NYSE:KND) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 3.8%. China Cord Blood Corporation does not pay a dividend. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend.
Institutional and Insider Ownership
13.3% of China Cord Blood Corporation shares are held by institutional investors. Comparatively, 88.1% of Kindred Healthcare shares are held by institutional investors. 3.0% of Kindred Healthcare shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for China Cord Blood Corporation and Kindred Healthcare, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Cord Blood Corporation||0||0||0||0||N/A|
Kindred Healthcare has a consensus price target of $8.71, suggesting a potential upside of 39.43%. Given Kindred Healthcare’s higher possible upside, analysts clearly believe Kindred Healthcare is more favorable than China Cord Blood Corporation.
This table compares China Cord Blood Corporation and Kindred Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Cord Blood Corporation||22.07%||8.64%||3.50%|
Volatility and Risk
China Cord Blood Corporation has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Earnings & Valuation
This table compares China Cord Blood Corporation and Kindred Healthcare’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Cord Blood Corporation||$122.77 million||10.34||$52.40 million||$0.29||38.55|
|Kindred Healthcare||$7.08 billion||0.08||$470.57 million||($12.82)||-0.49|
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.
Kindred Healthcare beats China Cord Blood Corporation on 9 of the 15 factors compared between the two stocks.
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.
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.
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