Analyzing Avantor (NYSE:AVTR) and Selectis Health (OTCMKTS:GBCS)

Selectis Health (OTCMKTS:GBCS) and Avantor (NYSE:AVTR) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Selectis Health and Avantor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Selectis Health	-1.87%	N/A	-2.34%
Avantor	-1.25%	10.91%	5.34%

Institutional and Insider Ownership

95.1% of Avantor shares are held by institutional investors. 15.2% of Selectis Health shares are held by company insiders. Comparatively, 1.2% of Avantor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Selectis Health and Avantor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selectis Health	$39.49 million	0.21	-$2.42 million	($0.27)	-10.19
Avantor	$6.78 billion	1.08	$711.50 million	($0.13)	-82.96

Avantor has higher revenue and earnings than Selectis Health. Avantor is trading at a lower price-to-earnings ratio than Selectis Health, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Selectis Health has a beta of -0.99, indicating that its share price is 199% less volatile than the S&P 500. Comparatively, Avantor has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Selectis Health and Avantor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selectis Health	0	0	0	0	0.00
Avantor	1	11	3	0	2.13

Avantor has a consensus target price of $13.60, indicating a potential upside of 26.10%. Given Avantor’s stronger consensus rating and higher probable upside, analysts plainly believe Avantor is more favorable than Selectis Health.

Summary

Avantor beats Selectis Health on 12 of the 14 factors compared between the two stocks.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.

About Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.