Kindred Healthcare (NYSE: KND) and Capital Senior Living (NYSE:CSU) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Volatility and Risk
Kindred Healthcare has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Capital Senior Living has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
This table compares Kindred Healthcare and Capital Senior Living’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital Senior Living||-9.46%||-9.79%||-0.73%|
Valuation and Earnings
This table compares Kindred Healthcare and Capital Senior Living’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kindred Healthcare||$6.03 billion||0.13||-$698.35 million||$0.34||26.18|
|Capital Senior Living||$467.00 million||0.77||-$44.16 million||($0.29)||-40.62|
Capital Senior Living has lower revenue, but higher earnings than Kindred Healthcare. Capital Senior Living is trading at a lower price-to-earnings ratio than Kindred Healthcare, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.0% of Kindred Healthcare shares are owned by institutional investors. Comparatively, 91.7% of Capital Senior Living shares are owned by institutional investors. 3.0% of Kindred Healthcare shares are owned by insiders. Comparatively, 21.4% of Capital Senior Living shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings for Kindred Healthcare and Capital Senior Living, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital Senior Living||0||1||0||0||2.00|
Kindred Healthcare currently has a consensus target price of $9.07, indicating a potential upside of 1.93%. Capital Senior Living has a consensus target price of $13.00, indicating a potential upside of 10.36%. Given Capital Senior Living’s higher possible upside, analysts plainly believe Capital Senior Living is more favorable than Kindred Healthcare.
Capital Senior Living beats Kindred Healthcare on 7 of the 13 factors compared between the two stocks.
Kindred Healthcare Company Profile
Kindred Healthcare, Inc. provides healthcare services in the United States. It operates through five segments: Home Health Services, Hospice Services, Hospitals, Kindred Hospital Rehabilitation Services, and RehabCare. The company provides long-term acute care (LTAC) services to post-intensive care and medically complex patients, including the critically ill and suffering from multiple organ system failures most commonly of the cardiovascular, pulmonary, kidney, gastro-intestinal, and cutaneous systems. It also offers home health, hospice, and community care services for patients in various settings comprising their homes, nursing centers, and other residential settings, as well as physician services for patients in home-based settings. In addition, the company operates inpatient rehabilitation hospitals (IRFs) and acute rehabilitation units (ARUs); and provides rehabilitation services, including physical and occupational therapies and speech pathology services to residents and patients of nursing centers, hospitals, outpatient clinics, home health agencies, and assisted living facilities. As of December 31, 2017, it operated 19 IRFs, 99 ARUs, 104 LTAC hospitals, 4 sub-acute units, and 123 outpatient clinics; provided rehabilitative services from 1,616 sites of service in 42 states; and offered Kindred at Home division home health, hospice, and community care services from 608 sites of service in 40 states. The company is headquartered in Louisville, Kentucky.
Capital Senior Living Company Profile
Capital Senior Living Corporation owns, operates, develops, and manages senior housing communities in the United States. The company provides senior living services to the elderly, including independent and assisted living, and home care services. Its independent living services comprise daily meals, transportation, social and recreational activities, laundry, housekeeping, and 24-hour staffing; and access to health screenings, periodic special services, and dietary and similar programs, as well as ongoing exercise and fitness classes. The company's assisted living services consist of personal care services, such as assistance with activities of daily living (ADLs), including ambulation, bathing, dressing, eating, grooming, personal hygiene, and monitoring or assistance with medications; support services comprising meals, assistance with social and recreational activities, laundry, general housekeeping, maintenance, and transportation services; and supplemental services consisting of extra transportation, personal maintenance, extra laundry, and special care services for residents with various forms of dementia. In addition, it offers home care services through third-party providers. As of December 31, 2017, the company operated 129 senior housing communities in 23 states with an aggregate capacity of approximately 16,500 residents, including 83 senior housing communities and 46 leased senior housing communities. Capital Senior Living Corporation was founded in 1990 and is headquartered in Dallas, Texas.
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