Kindred Healthcare (KND) versus Brookdale Senior Living (BKD) Head to Head Contrast

Kindred Healthcare (NYSE: KND) and Brookdale Senior Living (NYSE:BKD) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings & Valuation

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This table compares Kindred Healthcare and Brookdale Senior Living’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kindred Healthcare $6.03 billion 0.13 -$698.35 million $0.34 26.18
Brookdale Senior Living $4.75 billion 0.27 -$571.41 million ($0.78) -8.65

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

Institutional and Insider Ownership

89.0% of Kindred Healthcare shares are held by institutional investors. 3.0% of Kindred Healthcare shares are held by company insiders. Comparatively, 1.5% of Brookdale Senior Living shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Kindred Healthcare -11.16% 4.64% 0.50%
Brookdale Senior Living -12.04% -8.40% -1.80%

Analyst Ratings

This is a summary of current ratings for Kindred Healthcare and Brookdale Senior Living, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kindred Healthcare 1 4 1 0 2.00
Brookdale Senior Living 0 2 2 0 2.50

Kindred Healthcare presently has a consensus target price of $8.83, indicating a potential downside of 0.75%. Brookdale Senior Living has a consensus target price of $9.50, indicating a potential upside of 40.74%. Given Brookdale Senior Living’s stronger consensus rating and higher possible upside, analysts clearly believe Brookdale Senior Living is more favorable than Kindred Healthcare.

Risk & Volatility

Kindred Healthcare has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Summary

Kindred Healthcare beats Brookdale Senior Living on 7 of the 13 factors compared between the two stocks.

About Kindred Healthcare

Kindred Healthcare, Inc. provides healthcare services in the United States. It operates through five segments: Home Health Services, Hospice Services, Hospitals, Kindred Hospital Rehabilitation Services, and RehabCare. The company provides long-term acute care (LTAC) services to post-intensive care and medically complex patients, including the critically ill and suffering from multiple organ system failures most commonly of the cardiovascular, pulmonary, kidney, gastro-intestinal, and cutaneous systems. It also offers home health, hospice, and community care services for patients in various settings comprising their homes, nursing centers, and other residential settings, as well as physician services for patients in home-based settings. In addition, the company operates inpatient rehabilitation hospitals (IRFs) and acute rehabilitation units (ARUs); and provides rehabilitation services, including physical and occupational therapies and speech pathology services to residents and patients of nursing centers, hospitals, outpatient clinics, home health agencies, and assisted living facilities. As of December 31, 2017, it operated 19 IRFs, 99 ARUs, 104 LTAC hospitals, 4 sub-acute units, and 123 outpatient clinics; provided rehabilitative services from 1,616 sites of service in 42 states; and offered Kindred at Home division home health, hospice, and community care services from 608 sites of service in 40 states. The company is headquartered in Louisville, Kentucky.

About Brookdale Senior Living

Brookdale Senior Living Inc. owns and operates senior living communities in the United States. It operates through five segments: Retirement Centers, Assisted Living, CCRCs ? Rental, Brookdale Ancillary Services, and Management Services. The Retirement Centers segment owns or leases communities comprising independent living and assisted living units in a single community that are primarily designed for middle to upper income senior citizens. The Assisted Living 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 life to mid-acuity frail and elderly residents. This segment also operates memory care communities for residents with Alzheimer's disease and other dementias. The CCRCs – Rental segment owns or leases communities that offer various living arrangements and services to accommodate various levels of physical ability and health. The Brookdale Ancillary Services segment provides outpatient therapy, home health, and hospice services; and education and wellness programs to residents of its communities, as well as to other senior living communities. The Management Services segment operates communities under the management agreements. As of December 31, 2017, the company operated 129 retirement center communities with 24,476 units; 822 assisted living communities with 56,718 units; and 72 CCRCs with 19,388 units, as well as owned or leased 794 communities with 66,641 units and provided management services with respect to 229 communities with 33,941 units for third parties or unconsolidated ventures. Brookdale Senior Living Inc. is headquartered in Brentwood, Tennessee.

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