Civitas Solutions (NYSE: CIVI) and Brookdale Senior Living (NYSE:BKD) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Civitas Solutions and Brookdale Senior Living’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Civitas Solutions $1.44 billion 0.44 $147.66 million $0.46 36.96
Brookdale Senior Living $4.19 billion 0.67 $808.61 million ($2.60) -5.77

Brookdale Senior Living has higher revenue and earnings than Civitas Solutions. Brookdale Senior Living is trading at a lower price-to-earnings ratio than Civitas Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Civitas Solutions 1.19% 16.20% 2.27%
Brookdale Senior Living -9.77% 13.22% 3.14%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Civitas Solutions and Brookdale Senior Living, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Civitas Solutions 0 2 2 0 2.50
Brookdale Senior Living 1 0 5 0 2.67

Civitas Solutions presently has a consensus price target of $25.00, indicating a potential upside of 47.06%. Brookdale Senior Living has a consensus price target of $19.33, indicating a potential upside of 28.97%. Given Civitas Solutions’ higher probable upside, analysts clearly believe Civitas Solutions is more favorable than Brookdale Senior Living.

Institutional and Insider Ownership

93.4% of Civitas Solutions shares are owned by institutional investors. 5.3% of Civitas Solutions shares are owned by insiders. Comparatively, 1.3% of Brookdale Senior Living shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Civitas Solutions has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

About Civitas Solutions

Civitas Solutions, Inc. is a provider of home- and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. The Company operates through two segments: Human Services and Post-Acute Specialty Rehabilitation Services (SRS). The Human Services segment provides home- and community-based human services to individuals with intellectual and/or developmental disabilities (I/DD), youth with emotional, behavioral and/or medically complex challenges or at-risk youth (ARY), and elders. The SRS segment delivers healthcare and community-based health and human services to individuals having suffered acquired brain injury, spinal injuries, and other catastrophic injuries and illnesses. Within its SRS segment, its NeuroRestorative business unit is focused on rehabilitation and transitional living services, and its CareMeridian business unit is focused on the medically-intensive post-acute care services.

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.

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