Kindred Healthcare (NYSE: KND) and Diplomat Pharmacy (NYSE:DPLO) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.
Valuation and Earnings
This table compares Kindred Healthcare and Diplomat Pharmacy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kindred Healthcare||$7.22 billion||0.11||-$664.23 million||($1.97)||-4.77|
|Diplomat Pharmacy||$4.41 billion||0.32||$28.27 million||$0.12||171.58|
Kindred Healthcare pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. Diplomat Pharmacy does not pay a dividend. Kindred Healthcare pays out -6.1% of its earnings in the form of a dividend.
This is a summary of recent recommendations for Kindred Healthcare and Diplomat Pharmacy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kindred Healthcare presently has a consensus target price of $8.83, suggesting a potential downside of 6.03%. Diplomat Pharmacy has a consensus target price of $20.31, suggesting a potential downside of 1.35%. Given Diplomat Pharmacy’s stronger consensus rating and higher probable upside, analysts plainly believe Diplomat Pharmacy is more favorable than Kindred Healthcare.
This table compares Kindred Healthcare and Diplomat Pharmacy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
89.6% of Kindred Healthcare shares are owned by institutional investors. Comparatively, 72.2% of Diplomat Pharmacy shares are owned by institutional investors. 3.0% of Kindred Healthcare shares are owned by insiders. Comparatively, 30.2% of Diplomat Pharmacy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Kindred Healthcare has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Diplomat Pharmacy has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
Diplomat Pharmacy beats Kindred Healthcare on 11 of the 16 factors compared between the two stocks.
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.
Diplomat Pharmacy Company Profile
Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.
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