Kindred Healthcare (NYSE: KND) and LifePoint Health (NASDAQ:LPNT) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Institutional and Insider Ownership

88.7% of Kindred Healthcare shares are owned by institutional investors. Comparatively, 99.5% of LifePoint Health shares are owned by institutional investors. 3.0% of Kindred Healthcare shares are owned by company insiders. Comparatively, 7.3% of LifePoint Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Kindred Healthcare and LifePoint Health’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kindred Healthcare $7.08 billion 0.09 $470.57 million ($12.82) -0.59
LifePoint Health $6.42 billion 0.35 $760.40 million $4.48 12.43

LifePoint Health has higher revenue, but lower earnings than Kindred Healthcare. Kindred Healthcare is trading at a lower price-to-earnings ratio than LifePoint Health, indicating that it is currently the more affordable of the two stocks.

Dividends

Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 3.2%. LifePoint Health does not pay a dividend. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend.

Volatility and Risk

Kindred Healthcare has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, LifePoint Health has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kindred Healthcare and LifePoint Health, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kindred Healthcare 2 3 2 0 2.00
LifePoint Health 2 8 3 0 2.08

Kindred Healthcare presently has a consensus target price of $9.67, indicating a potential upside of 28.89%. LifePoint Health has a consensus target price of $65.50, indicating a potential upside of 17.59%. Given Kindred Healthcare’s higher possible upside, equities research analysts clearly believe Kindred Healthcare is more favorable than LifePoint Health.

Profitability

This table compares Kindred Healthcare and LifePoint Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kindred Healthcare -7.06% -80.03% -7.16%
LifePoint Health 2.61% 7.40% 2.66%

Summary

LifePoint Health beats Kindred Healthcare on 10 of the 16 factors compared between the two stocks.

Kindred Healthcare Company Profile

Kindred Healthcare, Inc., incorporated on March 27, 1998, is a healthcare services company. The Company, through its subsidiaries, operates transitional care (TC) hospitals, a home health, hospice and community care business, inpatient rehabilitation hospitals (IRFs), a contract rehabilitation services business, nursing centers and assisted living facilities across the United States. The Company operates through divisions: the Kindred at Home division, the hospital division, the Kindred Rehabilitation Services division and the nursing center division. These divisions represent six segments: home health services, hospice services, hospitals, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The home health services and hospice services operating segments are contained within the Kindred at Home division while the Kindred Hospital Rehabilitation Services and RehabCare operating segments are both contained within the Kindred Rehabilitation Services division.

LifePoint Health Company Profile

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. As of December 31, 2016, the Company operated 72 hospital campuses in 22 states, having a total of 9,424 licensed beds. It offers a range of general and specialized healthcare services to patients through a network of hospitals and outpatient facilities. Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services, and in some of its hospitals, the Company offers specialized services, such as open-heart surgery, skilled nursing, psychiatric care and neuro-surgery. It provides outpatient services, such as same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine and lithotripsy.

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