Five Star Senior Living (NASDAQ:FVE) and Diversicare Healthcare Services (NASDAQ:DVCR) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
Risk & Volatility
Five Star Senior Living has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Diversicare Healthcare Services has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
This table compares Five Star Senior Living and Diversicare Healthcare Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Five Star Senior Living||-2.63%||-36.10%||-10.80%|
|Diversicare Healthcare Services||-2.42%||-165.82%||-4.28%|
Valuation & Earnings
This table compares Five Star Senior Living and Diversicare Healthcare Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Five Star Senior Living||$1.40 billion||0.02||-$20.90 million||($0.53)||-1.30|
|Diversicare Healthcare Services||$574.79 million||0.05||-$4.82 million||N/A||N/A|
Diversicare Healthcare Services has lower revenue, but higher earnings than Five Star Senior Living.
Insider & Institutional Ownership
20.4% of Five Star Senior Living shares are owned by institutional investors. Comparatively, 19.5% of Diversicare Healthcare Services shares are owned by institutional investors. 39.8% of Five Star Senior Living shares are owned by company insiders. Comparatively, 38.7% of Diversicare Healthcare Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Diversicare Healthcare Services pays an annual dividend of $0.22 per share and has a dividend yield of 4.8%. Five Star Senior Living does not pay a dividend.
This is a breakdown of recent ratings for Five Star Senior Living and Diversicare Healthcare Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Five Star Senior Living||0||0||1||0||3.00|
|Diversicare Healthcare Services||0||0||0||0||N/A|
Five Star Senior Living currently has a consensus price target of $2.50, suggesting a potential upside of 262.32%. Given Five Star Senior Living’s higher probable upside, research analysts plainly believe Five Star Senior Living is more favorable than Diversicare Healthcare Services.
Five Star Senior Living beats Diversicare Healthcare Services on 7 of the 12 factors compared between the two stocks.
Five Star Senior Living Company Profile
Five Star Senior Living Inc. operates and manages senior living communities in the United States. It operates through Senior Living Communities, and Rehabilitation and Wellness segments. Its senior living communities comprise independent living communities, assisted living communities, and skilled nursing facilities (SNFs). The company offers nursing and healthcare services; and rehabilitation and wellness services. As of December 31, 2017, it operated 283 senior living communities consisting of 31,785 living units comprising 253 primarily independent and assisted living communities with 29,183 living units, and 30 SNFs with 2,602 living units located in 32 states. The company was formerly known as Five Star Quality Care, Inc. and changed its name to Five Star Senior Living Inc. in March 2017. Five Star Senior Living Inc. was founded in 2000 and is headquartered in Newton, Massachusetts.
Diversicare Healthcare Services Company Profile
Diversicare Healthcare Services, Inc. provides post-acute care services to skilled nursing center, patients, and residents primarily in the Southeast, Midwest, and Southwest United States. The company offers skilled nursing health care services, including nutrition, recreational therapy, social, housekeeping, and laundry services; the delivery of ancillary medical services at the nursing centers; rehabilitation therapy services, such as audiology, speech, occupational, and physical therapies; and medical supplies, nutritional support, infusion therapies, and related clinical services. As of March 1, 2018, it operated 76 nursing centers with 8,945 licensed nursing beds. The company was formerly known as Advocat Inc. and changed its name to Diversicare Healthcare Services, Inc. in March 2013. Diversicare Healthcare Services, Inc. was founded in 1994 and is based in Brentwood, Tennessee.
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