Head to Head Survey: Acadia Healthcare (ACHC) vs. Davita (DVA)

Acadia Healthcare (NASDAQ: ACHC) and Davita (NYSE:DVA) are both mid-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Risk & Volatility

Acadia Healthcare has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Davita has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Acadia Healthcare and Davita’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acadia Healthcare 6.07% 8.57% 3.22%
Davita 3.40% 13.31% 3.55%

Valuation & Earnings

This table compares Acadia Healthcare and Davita’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acadia Healthcare $2.85 billion 1.07 $6.14 million $1.97 17.58
Davita $14.75 billion 0.98 $879.87 million $2.61 30.32

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

Analyst Recommendations

This is a summary of recent ratings for Acadia Healthcare and Davita, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadia Healthcare 0 6 7 0 2.54
Davita 1 4 4 2 2.64

Acadia Healthcare currently has a consensus target price of $42.73, suggesting a potential upside of 23.38%. Davita has a consensus target price of $78.22, suggesting a potential downside of 1.15%. Given Acadia Healthcare’s higher probable upside, analysts plainly believe Acadia Healthcare is more favorable than Davita.

Insider & Institutional Ownership

87.9% of Davita shares are held by institutional investors. 11.1% of Acadia Healthcare shares are held by company insiders. Comparatively, 2.1% of Davita shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Davita beats Acadia Healthcare on 10 of the 15 factors compared between the two stocks.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.

Davita Company Profile

DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.

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