The Joint Corp. (NASDAQ: JYNT) and Kindred Healthcare (NYSE:KND) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

The Joint Corp. has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

47.0% of The Joint Corp. shares are held by institutional investors. Comparatively, 87.6% of Kindred Healthcare shares are held by institutional investors. 6.1% of The Joint Corp. shares are held by company insiders. Comparatively, 3.0% of Kindred Healthcare shares are held by company 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.

Dividends

Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 4.0%. The Joint Corp. does not pay a dividend. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares The Joint Corp. and Kindred Healthcare’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Joint Corp. $22.97 million 2.59 -$4.53 million ($0.87) -5.18
Kindred Healthcare $7.08 billion 0.07 $470.57 million ($12.82) -0.46

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for The Joint Corp. and Kindred Healthcare, 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
Kindred Healthcare 3 4 1 0 1.75

The Joint Corp. currently has a consensus target price of $6.15, indicating a potential upside of 36.36%. Kindred Healthcare has a consensus target price of $8.50, indicating a potential upside of 42.86%. Given Kindred Healthcare’s higher possible upside, analysts clearly believe Kindred Healthcare is more favorable than The Joint Corp..

Profitability

This table compares The Joint Corp. and Kindred Healthcare’s 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%
Kindred Healthcare -16.31% 3.49% 0.53%

Summary

Kindred Healthcare beats The Joint Corp. on 9 of the 15 factors compared between the two stocks.

About The Joint Corp.

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.

About Kindred Healthcare

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.

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