Emeritus (NYSE: ESC) and Five Star Senior Living (NASDAQ:FVE) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
This table compares Emeritus and Five Star Senior Living’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Five Star Senior Living||-1.83%||-18.10%||-5.59%|
This is a breakdown of recent ratings and target prices for Emeritus and Five Star Senior Living, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Five Star Senior Living||0||0||2||0||3.00|
Five Star Senior Living has a consensus price target of $3.88, suggesting a potential upside of 150.00%.
Institutional & Insider Ownership
21.3% of Five Star Senior Living shares are held by institutional investors. 39.8% of Five Star Senior Living shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Emeritus and Five Star Senior Living’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Five Star Senior Living||$1.38 billion||0.06||-$21.81 million||($0.53)||-2.92|
Emeritus has higher earnings, but lower revenue than Five Star Senior Living. Five Star Senior Living is trading at a lower price-to-earnings ratio than Emeritus, indicating that it is currently the more affordable of the two stocks.
Five Star Senior Living beats Emeritus on 5 of the 8 factors compared between the two stocks.
Emeritus Company Profile
Emeritus Corporation (Emeritus) is engaged in operations of senior living communities in the United States. The Company owns and operates a portfolio of communities providing services to its residents, including independent living, assisted living, specialized memory care, and, to a lesser extent, skilled nursing care. The Company provides a variety of supportive living services in a professionally staffed environment that enables seniors to live with dignity and independence. During the year ending December 31, 2012, the Company added home healthcare to its service offerings, through its acquisition of Florida-based Nurse on Call, Inc. (NOC). As of December 31, 2012, the Company operated 483 senior living communities in 45 states. The communities consisted of approximately 43,000 residential rooms or suites (collectively units) with a resident capacity for approximately 50,100 residents.
Five Star Senior Living Company Profile
Five Star Senior Living Inc., formerly Five Star Quality Care, Inc., operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). The Company’s segments include senior living communities and rehabilitation and wellness. In the senior living communities segment, the Company operates for its own account or manage for the account of others independent living communities, assisted living communities and SNFs that are subject to centralized oversight and provide housing and services to elderly residents. In the rehabilitation and wellness segment, the Company provides services in the inpatient setting and in outpatient clinics. As of December 31, 2016, the Company operated 283 senior living communities located in 32 states with 31,830 living units, including 253 primarily independent and assisted living communities with 29,229 living units and 30 SNFs with 2,601 living units.
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