Reviewing Genesis Healthcare (GEN) & Brookdale Senior Living (BKD)
Genesis Healthcare (NYSE: GEN) and Brookdale Senior Living (NYSE:BKD) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitabiliy, analyst recommendations and institutional ownership.
Volatility & Risk
Genesis Healthcare has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
Earnings and Valuation
This table compares Genesis Healthcare and Brookdale Senior Living’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Genesis Healthcare||$5.54 billion||0.02||$503.52 million||N/A||N/A|
|Brookdale Senior Living||$4.19 billion||0.58||$808.61 million||($2.60)||-5.05|
Brookdale Senior Living has higher revenue, but lower earnings than Genesis Healthcare.
Institutional and Insider Ownership
14.3% of Genesis Healthcare shares are held by institutional investors. 57.6% of Genesis Healthcare shares are held by company insiders. Comparatively, 1.3% of Brookdale Senior Living shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Genesis Healthcare and Brookdale Senior Living, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookdale Senior Living||1||0||5||0||2.67|
Genesis Healthcare presently has a consensus target price of $2.65, indicating a potential upside of 80.27%. Brookdale Senior Living has a consensus target price of $19.33, indicating a potential upside of 47.36%. Given Genesis Healthcare’s higher probable upside, analysts plainly believe Genesis Healthcare is more favorable than Brookdale Senior Living.
This table compares Genesis Healthcare and Brookdale Senior Living’s 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%|
Brookdale Senior Living beats Genesis Healthcare on 7 of the 12 factors compared between the two stocks.
About Genesis Healthcare
Genesis Healthcare, Inc. is a holding company that provides post-acute care. The Company operates through three segments: inpatient services, which includes the operation of skilled nursing facilities and assisted or senior living facilities; rehabilitation therapy services, which includes its integrated and third-party rehabilitation and respiratory therapy services, and all other services. As of December 31, 2016, the Company offered inpatient services through its network of 499 skilled nursing and assisted/senior living facilities across 34 states, consisting of 473 skilled nursing facilities and 26 stand-alone assisted/senior living facilities. Its services focus primarily on the medical and physical issues facing elderly patients and are provided by its skilled nursing companies, assisted or senior living communities, integrated and third-party rehabilitation therapy business, and other ancillary 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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