Analyzing Five Star Senior Living (FVE) and Capital Senior Living Corporation (NYSE:CSU)
Five Star Senior Living (NYSE: FVE) and Capital Senior Living Corporation (NYSE:CSU) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitabiliy.
Earnings and Valuation
This table compares Five Star Senior Living and Capital Senior Living Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Five Star Senior Living||$1.13 billion||0.07||$17.06 million||($0.84)||-1.90|
|Capital Senior Living Corporation||$452.54 million||0.93||$77.27 million||($1.50)||-9.70|
Capital Senior Living Corporation has higher revenue, but lower earnings than Five Star Senior Living. Capital Senior Living Corporation is trading at a lower price-to-earnings ratio than Five Star Senior Living, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Five Star Senior Living and Capital Senior Living Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Five Star Senior Living||0||0||2||0||3.00|
|Capital Senior Living Corporation||0||2||1||0||2.33|
Five Star Senior Living presently has a consensus target price of $3.88, suggesting a potential upside of 142.19%. Capital Senior Living Corporation has a consensus target price of $21.00, suggesting a potential upside of 44.33%. Given Five Star Senior Living’s stronger consensus rating and higher probable upside, analysts plainly believe Five Star Senior Living is more favorable than Capital Senior Living Corporation.
This table compares Five Star Senior Living and Capital Senior Living Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Five Star Senior Living||-1.97%||-16.89%||-5.48%|
|Capital Senior Living Corporation||-9.66%||-4.35%||-0.45%|
Volatility and Risk
Five Star Senior Living has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Capital Senior Living Corporation has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
Insider & Institutional Ownership
98.2% of Capital Senior Living Corporation shares are held by institutional investors. 7.1% of Capital Senior Living Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Five Star Senior Living beats Capital Senior Living Corporation on 7 of the 13 factors compared between the two stocks.
About Five Star Senior Living
Five Star Senior Living Inc., formerly Five Star Quality Care, Inc., operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). The Company’s segments include senior living communities and rehabilitation and wellness. In the senior living communities segment, the Company operates for its own account or manage for the account of others independent living communities, assisted living communities and SNFs that are subject to centralized oversight and provide housing and services to elderly residents. In the rehabilitation and wellness segment, the Company provides services in the inpatient setting and in outpatient clinics. As of December 31, 2016, the Company operated 283 senior living communities located in 32 states with 31,830 living units, including 253 primarily independent and assisted living communities with 29,229 living units and 30 SNFs with 2,601 living units.
About Capital Senior Living Corporation
Capital Senior Living Corporation is an operator of senior housing communities in the United States. The Company provides senior living services to the elderly, including independent living and assisted living services, and provides home care services at one of its communities. Its continuum of care integrates independent living and assisted living and is bridged by home care through independent home care agencies or its home care agency, sustains residents’ autonomy and independence based on their physical and mental abilities. As of December 31, 2016, it operated 129 senior housing communities in 23 states with an aggregate capacity of approximately 16,500 residents, including 79 senior housing communities, which it owned and 50 senior housing communities it leased. As of December 31, 2016, it also operated one home care agency. It offers assisted living care and services, including personal care services, around the clock staffing, support services and supplemental services.
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