Critical Survey: The Joint Corp. (JYNT) & Kindred Healthcare (KND)

The Joint Corp. (NASDAQ: JYNT) and Kindred Healthcare (NYSE:KND) are both large-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Dividends

Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 4.1%. The Joint Corp. does not pay a dividend. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares The Joint Corp. and Kindred Healthcare’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Joint Corp. $20.52 million 3.02 -$15.17 million ($0.87) -5.40
Kindred Healthcare $7.22 billion 0.07 -$664.23 million ($12.82) -0.46

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

Profitability

This table compares The Joint Corp. and Kindred Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Joint Corp. -48.08% -103.25% -42.06%
Kindred Healthcare -16.31% 3.49% 0.53%

Risk and Volatility

The Joint Corp. has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Institutional and Insider Ownership

46.9% of The Joint Corp. shares are owned by institutional investors. Comparatively, 88.0% of Kindred Healthcare shares are owned by institutional investors. 6.1% of The Joint Corp. shares are owned by insiders. Comparatively, 3.0% of Kindred Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for The Joint Corp. and Kindred Healthcare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Joint Corp. 0 0 4 0 3.00
Kindred Healthcare 3 4 1 0 1.75

The Joint Corp. presently has a consensus price target of $6.15, indicating a potential upside of 30.85%. Kindred Healthcare has a consensus price target of $8.50, indicating a potential upside of 44.07%. Given Kindred Healthcare’s higher probable upside, analysts clearly believe Kindred Healthcare is more favorable than The Joint Corp..

Summary

Kindred Healthcare beats The Joint Corp. on 8 of the 15 factors compared between the two stocks.

The Joint Corp. Company Profile

The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.

Kindred Healthcare Company Profile

Kindred Healthcare, Inc., incorporated on March 27, 1998, is a healthcare services company. The Company, through its subsidiaries, operates transitional care (TC) hospitals, a home health, hospice and community care business, inpatient rehabilitation hospitals (IRFs), a contract rehabilitation services business, nursing centers and assisted living facilities across the United States. The Company operates through divisions: the Kindred at Home division, the hospital division, the Kindred Rehabilitation Services division and the nursing center division. These divisions represent six segments: home health services, hospice services, hospitals, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The home health services and hospice services operating segments are contained within the Kindred at Home division while the Kindred Hospital Rehabilitation Services and RehabCare operating segments are both contained within the Kindred Rehabilitation Services division.

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