Contrasting Genesis Healthcare (NYSE:GEN) and National HealthCare (NYSE:NHC)

Genesis Healthcare (NYSE:GEN) and National HealthCare (NYSE:NHC) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Genesis Healthcare and National HealthCare’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genesis Healthcare $4.57 billion 0.02 $14.62 million N/A N/A
National HealthCare $996.38 million 0.95 $68.21 million N/A N/A

National HealthCare has lower revenue, but higher earnings than Genesis Healthcare.

Analyst Recommendations

This is a summary of current ratings and target prices for Genesis Healthcare and National HealthCare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genesis Healthcare 0 0 0 0 N/A
National HealthCare 0 0 0 0 N/A

Insider and Institutional Ownership

15.7% of Genesis Healthcare shares are held by institutional investors. Comparatively, 46.8% of National HealthCare shares are held by institutional investors. 36.6% of Genesis Healthcare shares are held by company insiders. Comparatively, 13.1% of National HealthCare shares are held 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.

Volatility and Risk

Genesis Healthcare has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, National HealthCare has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Profitability

This table compares Genesis Healthcare and National HealthCare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genesis Healthcare 1.07% -5.06% 1.18%
National HealthCare 3.41% 7.76% 4.59%

Summary

National HealthCare beats Genesis Healthcare on 7 of the 10 factors compared between the two stocks.

Genesis Healthcare Company Profile

Genesis Healthcare, Inc., together with its subsidiaries, owns and operates skilled nursing facilities and assisted/senior living facilities in the United States. The company operates through three segments: Inpatient Services, Rehabilitation Therapy Services, and All Other Services. It also provides a range of rehabilitation therapy services, including speech-language pathology, physical therapy, occupational therapy, and respiratory therapy. In addition, the company offers other specialty medical services, such as physician, staffing, and other healthcare related services. As of December 31, 2018, it provided inpatient services through a network of 425 skilled nursing and assisted/senior living facilities, including 399 skilled nursing facilities and 26 stand-alone assisted/senior living facilities across 29 states. Genesis HealthCare, Inc. also supplies rehabilitation and respiratory therapy to approximately 1,400 healthcare locations in 46 states and the District of Columbia. The company was formerly known as FC-GEN Operations Investment, LLC and changed its name to Genesis HealthCare, Inc. in February 2015. Genesis HealthCare, Inc. was founded in 2003 and is headquartered in Kennett Square, Pennsylvania.

National HealthCare Company Profile

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, and home health care programs. Its skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, such as physical, speech, respiratory, and occupational therapy for patients recovering from strokes, heart attacks, orthopedic conditions, neurological illnesses, or other illnesses, injuries, or disabilities. The company's medical specialty units comprise memory care units and subacute nursing units that provide specialized care and programs for persons with Alzheimer's or related disorders; and assisted living centers offer personal care services and assistance with general activities of daily living, such as dressing, bathing, meal preparation, and medication management. It also owns, leases, and manages independent living facilities that provide specially designed residential units for the active and ambulatory elderly, as well as offers various ancillary services for its residents, including restaurants, activity rooms, and social areas. In addition, it provides health care programs that offer skilled services, such as infusion, wound care and physical, occupational, and speech therapies; operates pharmacies; offers management, accounting, financial, and insurance services; and leases its properties to third party operators. As of December 31, 2019, the company operated 75 skilled nursing facilities with 9,513 licensed beds; 25 assisted living facilities; 5 independent living facilities; 35 homecare programs; and 4 pharmacy locations. National HealthCare Corporation was founded in 1971 and is based in Murfreesboro, Tennessee.

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