Critical Review: The Joint Corp. (JYNT) versus Surgical Care Affiliates (SCAI)
The Joint Corp. (NASDAQ: JYNT) and Surgical Care Affiliates (NASDAQ:SCAI) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Volatility & Risk
The Joint Corp. has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Surgical Care Affiliates has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
Insider and Institutional Ownership
46.1% of The Joint Corp. shares are held by institutional investors. 6.1% of The Joint Corp. shares are held by company insiders. Comparatively, 3.3% of Surgical Care Affiliates shares are held by company 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.
Valuation and Earnings
This table compares The Joint Corp. and Surgical Care Affiliates’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Joint Corp.||$22.97 million||2.18||-$4.53 million||($0.87)||-4.37|
|Surgical Care Affiliates||N/A||N/A||N/A||$0.55||101.58|
Surgical Care Affiliates has higher revenue, but lower earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than Surgical Care Affiliates, indicating that it is currently the more affordable of the two stocks.
This table compares The Joint Corp. and Surgical Care Affiliates’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Joint Corp.||-48.08%||-103.25%||-42.06%|
|Surgical Care Affiliates||21.52%||13.07%||12.83%|
This is a breakdown of recent ratings and target prices for The Joint Corp. and Surgical Care Affiliates, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Joint Corp.||0||0||4||0||3.00|
|Surgical Care Affiliates||0||2||0||0||2.00|
The Joint Corp. currently has a consensus price target of $6.15, suggesting a potential upside of 61.84%. Surgical Care Affiliates has a consensus price target of $50.00, suggesting a potential downside of 10.51%. Given The Joint Corp.’s stronger consensus rating and higher probable upside, research analysts plainly believe The Joint Corp. is more favorable than Surgical Care Affiliates.
The Joint Corp. beats Surgical Care Affiliates on 7 of the 11 factors compared between the two stocks.
The Joint Corp. Company Profile
The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.
Surgical Care Affiliates Company Profile
Surgical Care Affiliates, Inc. is a provider of solutions to physicians, health plans and health systems to optimize surgical care. The Company offers tools and systems in the areas of clinical benchmarking, clinical best practices, operating efficiency, care coordination and supply chain management. As of December 31, 2016, the Company operated a network of surgical facilities in the United States, which included 197 ambulatory surgery centers (ASCs) and seven surgical hospitals in partnership with approximately 3,000 physician partners. The Company’s operations consist of its ownership and management of ASCs and surgical hospitals. Its ASCs provide the facilities, equipment, supplies and clinical support staff necessary to provide non-emergency surgical services to patients not requiring hospitalization. Its surgical hospitals allow physicians to perform a range of surgical procedures, including surgeries, and allow patients to stay in the hospital for several nights to recover.
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