Brookdale Senior Living (NYSE:BKD – Get Free Report) and The Ensign Group (NASDAQ:ENSG – Get Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Risk and Volatility
Brookdale Senior Living has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, The Ensign Group has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Profitability
This table compares Brookdale Senior Living and The Ensign Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookdale Senior Living | -7.52% | -79.84% | -3.33% |
| The Ensign Group | 6.99% | 16.90% | 6.56% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookdale Senior Living | $3.13 billion | 0.51 | -$201.93 million | ($1.04) | -6.51 |
| The Ensign Group | $4.26 billion | 2.08 | $297.97 million | $5.29 | 29.08 |
The Ensign Group has higher revenue and earnings than Brookdale Senior Living. Brookdale Senior Living is trading at a lower price-to-earnings ratio than The Ensign Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Brookdale Senior Living and The Ensign Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookdale Senior Living | 1 | 1 | 3 | 0 | 2.40 |
| The Ensign Group | 0 | 1 | 5 | 0 | 2.83 |
Brookdale Senior Living presently has a consensus price target of $7.70, suggesting a potential upside of 13.65%. The Ensign Group has a consensus price target of $163.50, suggesting a potential upside of 6.27%. Given Brookdale Senior Living’s higher possible upside, equities research analysts clearly believe Brookdale Senior Living is more favorable than The Ensign Group.
Institutional & Insider Ownership
96.1% of The Ensign Group shares are owned by institutional investors. 1.8% of Brookdale Senior Living shares are owned by insiders. Comparatively, 3.9% of The Ensign Group shares are owned by 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.
Summary
The Ensign Group beats Brookdale Senior Living on 13 of the 14 factors compared between the two stocks.
About Brookdale Senior Living
Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding, multi-story communities and freestanding, single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company’s residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.
About The Ensign Group
The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The company's Skilled Services segment engages in the operation of skilled nursing facilities and rehabilitation therapy services for patients with chronic conditions, prolonged illness, and the elderly; and offers nursing facilities including specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management, as well as standard services comprising room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. Its Standard Bearer segment is comprised of selected real estate properties owned by Standard Bearer and leased to skilled nursing and senior living operators. In addition, the company provides ancillary services consisting of digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, and long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities, as well as mobile diagnostics. It operates in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.
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