Analyzing Addus HomeCare (NASDAQ:ADUS) & Joint (NASDAQ:JYNT)

Joint (NASDAQ:JYNT) and Addus HomeCare (NASDAQ:ADUS) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Joint and Addus HomeCare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint	1	2	0	0	1.67
Addus HomeCare	1	4	5	1	2.55

Addus HomeCare has a consensus price target of $129.33, suggesting a potential upside of 3.02%. Given Addus HomeCare’s stronger consensus rating and higher probable upside, analysts plainly believe Addus HomeCare is more favorable than Joint.

Insider and Institutional Ownership

76.9% of Joint shares are held by institutional investors. Comparatively, 95.3% of Addus HomeCare shares are held by institutional investors. 30.2% of Joint shares are held by insiders. Comparatively, 4.1% of Addus HomeCare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Joint and Addus HomeCare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint	6.49%	12.02%	3.47%
Addus HomeCare	7.13%	9.96%	7.62%

Risk and Volatility

Joint has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Addus HomeCare has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Valuation & Earnings

This table compares Joint and Addus HomeCare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint	$54.90 million	1.81	$2.91 million	$0.27	26.04
Addus HomeCare	$1.42 billion	1.65	$95.91 million	$5.70	22.02

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

Summary

Addus HomeCare beats Joint on 10 of the 15 factors compared between the two stocks.

About Joint

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.

About Addus HomeCare

Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. Addus HomeCare Corporation was founded in 1979 and is headquartered in Frisco, Texas.