Critical Analysis: Joint (JYNT) and Its Competitors

Joint (NASDAQ:JYNT) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it compare to its peers? We will compare Joint to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Valuation and Earnings

This table compares Joint and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Joint	$58.55 million	$2.91 million	27.59
Joint Competitors	$21.25 billion	$288.54 million	6.97

Joint’s peers have higher revenue and earnings than Joint. Joint is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Joint and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint	1	2	0	0	1.67
Joint Competitors	1853	7708	13275	815	2.55

As a group, “Healthcare Providers & Services” companies have a potential upside of 11.25%. Given Joint’s peers stronger consensus rating and higher possible upside, analysts plainly believe Joint has less favorable growth aspects than its peers.

Institutional and Insider Ownership

76.9% of Joint shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 30.2% of Joint shares are owned by insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Joint and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint	6.49%	12.02%	3.47%
Joint Competitors	-7.93%	-141.02%	-1.45%

Risk & Volatility

Joint has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Joint’s peers have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Summary

Joint beats its peers on 7 of the 13 factors compared.

Joint Company Profile

The Joint Corp. operates and franchises chiropractic clinics in the United States. The company operates in two segments, Corporate Clinics and Franchise Operations. The Joint Corp. was incorporated in 2010 and is headquartered in Scottsdale, Arizona.