Critical Analysis: LHC Group (LHCG) versus New York Health Care (BBAL)

LHC Group (NASDAQ:LHCG) and New York Health Care (OTCMKTS:BBAL) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares LHC Group and New York Health Care’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LHC Group 3.75% 8.33% 5.64%
New York Health Care N/A N/A N/A

Institutional and Insider Ownership

86.2% of LHC Group shares are owned by institutional investors. 6.8% of LHC Group shares are owned by company insiders. Comparatively, 6.7% of New York Health Care shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

LHC Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, New York Health Care has a beta of -2.09, suggesting that its stock price is 309% less volatile than the S&P 500.

Earnings and Valuation

This table compares LHC Group and New York Health Care’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LHC Group $1.07 billion 2.78 $50.11 million $2.42 39.28
New York Health Care N/A N/A N/A N/A N/A

LHC Group has higher revenue and earnings than New York Health Care.

Analyst Recommendations

This is a summary of recent recommendations and price targets for LHC Group and New York Health Care, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LHC Group 0 3 8 0 2.73
New York Health Care 0 0 0 0 N/A

LHC Group presently has a consensus price target of $105.60, indicating a potential upside of 11.10%. Given LHC Group’s higher possible upside, equities analysts plainly believe LHC Group is more favorable than New York Health Care.

Summary

LHC Group beats New York Health Care on 9 of the 9 factors compared between the two stocks.

About LHC Group

LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States. The company operates through four segments: Home Health Services, Hospice Services, Community-Based Services, and Facility-Based Services. The Home Health Services segment offers home nursing services, including wound care and dressing changes, cardiac rehabilitation, infusion therapy, pain management, pharmaceutical administration, skilled observation and assessment, and patient education; medically-oriented social services; and physical, occupational, and speech therapy services. The Hospice Services segment provides pain and symptom management accompanied by palliative medication, emotional and spiritual support, inpatient and respite care, homemaker services, dietary counseling, family bereavement counseling, and social worker visits. The Community-Based Services segment offers a range of services, such as assistance with grooming, medication reminders, meal preparation, assistance with feeding, light housekeeping, respite care, transportation, and errand services to patients in their home or in a medical facility. The Facility-Based Services segment serves patients suffering from respiratory failure, neuromuscular disorders, cardiac disorders, non-healing wounds, renal disorders, cancer, head and neck injuries, and mental disorders, as well as treats patients diagnosed with musculoskeletal impairments. The company also operates institutional pharmacy, a family health center, a rural health clinic, and a retail pharmacy, as well as offers physical therapy services. As of December 31, 2017, it operated 318 home health services locations, 91 hospice locations, 12 community-based service locations, and 11 long-term acute care hospitals with 15 locations. LHC Group, Inc. was founded in 1994 and is based in Lafayette, Louisiana.

About New York Health Care

New York Health Care, Inc. operates as a home care services agency primarily in New York. The company offers various home care services, such as companionship services, homemaker/housekeeper staff, professional and practical nurses, home health aides, care givers, geriatric care, and dementia and alzheimer care services. It also provides insurance services. The company was founded in 1983 and is based in Valley Stream, New York.

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