Reviewing Brookdale Senior Living (BKD) & Emeritus (ESC)

Brookdale Senior Living (NYSE: BKD) and Emeritus (NYSE:ESC) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brookdale Senior Living and Emeritus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookdale Senior Living 0 0 5 0 3.00
Emeritus 0 0 0 0 N/A

Brookdale Senior Living currently has a consensus target price of $15.30, indicating a potential upside of 49.71%.

Profitability

This table compares Brookdale Senior Living and Emeritus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookdale Senior Living -17.85% -0.79% -0.17%
Emeritus N/A N/A N/A

Insider & Institutional Ownership

99.9% of Brookdale Senior Living shares are held by institutional investors. 1.5% of Brookdale Senior Living shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Brookdale Senior Living and Emeritus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookdale Senior Living $4.98 billion 0.38 -$404.39 million ($4.60) -2.22
Emeritus N/A N/A N/A ($3.16) N/A

Emeritus has lower revenue, but higher earnings than Brookdale Senior Living. Brookdale Senior Living is trading at a lower price-to-earnings ratio than Emeritus, indicating that it is currently the more affordable of the two stocks.

About Brookdale Senior Living

Brookdale Senior Living Inc. operates senior living communities in the United States. The Company operates independent living, assisted living and dementia-care communities, and continuing care retirement centers (CCRCs). It operates through five segments: Retirement Centers; Assisted Living; CCRCs-Rental; Brookdale Ancillary Services and Management Services. The Retirement Centers segment includes owned or leased communities for middle to upper income seniors. The Assisted Living segment includes owned or leased communities that offer housing and round the clock assistance with activities of daily life to mid-acuity frail and elderly residents. The CCRCs-Rental segment includes leased communities that offer living arrangements to accommodate physical ability and health. The Brookdale Ancillary Services segment includes outpatient therapy, home health and hospice services, as well as education and wellness programs. The Management Services segment includes communities operated by it.

About Emeritus

Emeritus Corporation (Emeritus) is engaged in operations of senior living communities in the United States. The Company owns and operates a portfolio of communities providing services to its residents, including independent living, assisted living, specialized memory care, and, to a lesser extent, skilled nursing care. The Company provides a variety of supportive living services in a professionally staffed environment that enables seniors to live with dignity and independence. During the year ending December 31, 2012, the Company added home healthcare to its service offerings, through its acquisition of Florida-based Nurse on Call, Inc. (NOC). As of December 31, 2012, the Company operated 483 senior living communities in 45 states. The communities consisted of approximately 43,000 residential rooms or suites (collectively units) with a resident capacity for approximately 50,100 residents.

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