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

Earnings & Valuation

This table compares Brookdale Senior Living and Civitas Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookdale Senior Living $4.19 billion 0.63 $808.61 million ($2.60) -5.44
Civitas Solutions $1.44 billion 0.48 $147.66 million $0.46 40.00

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.

Insider & Institutional Ownership

93.4% of Civitas Solutions shares are held by institutional investors. 1.3% of Brookdale Senior Living shares are held by insiders. Comparatively, 5.3% of Civitas Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

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

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

Brookdale Senior Living currently has a consensus price target of $19.33, suggesting a potential upside of 36.63%. Civitas Solutions has a consensus price target of $25.00, suggesting a potential upside of 35.87%. Given Brookdale Senior Living’s stronger consensus rating and higher possible upside, equities analysts plainly believe Brookdale Senior Living is more favorable than Civitas Solutions.

Volatility & Risk

Brookdale Senior Living has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Civitas Solutions has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Profitability

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

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

Summary

Brookdale Senior Living beats Civitas Solutions on 8 of the 14 factors compared between the two stocks.

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.

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.

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