Reviewing Kindred Healthcare (KND) and Select Medical Holdings Corporation (SEM)
Kindred Healthcare (NYSE: KND) and Select Medical Holdings Corporation (NYSE:SEM) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 3.2%. Select Medical Holdings Corporation does not pay a dividend. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for Kindred Healthcare and Select Medical Holdings Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Medical Holdings Corporation||1||2||3||0||2.33|
Kindred Healthcare presently has a consensus price target of $9.67, suggesting a potential upside of 28.89%. Select Medical Holdings Corporation has a consensus price target of $18.40, suggesting a potential upside of 6.05%. Given Kindred Healthcare’s higher possible upside, equities research analysts clearly believe Kindred Healthcare is more favorable than Select Medical Holdings Corporation.
Earnings and Valuation
This table compares Kindred Healthcare and Select Medical Holdings Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kindred Healthcare||$7.08 billion||0.09||$470.57 million||($12.82)||-0.59|
|Select Medical Holdings Corporation||$4.26 billion||0.54||$474.80 million||$0.64||27.11|
Select Medical Holdings Corporation has higher revenue, but lower earnings than Kindred Healthcare. Kindred Healthcare is trading at a lower price-to-earnings ratio than Select Medical Holdings Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
88.7% of Kindred Healthcare shares are held by institutional investors. Comparatively, 79.0% of Select Medical Holdings Corporation shares are held by institutional investors. 3.0% of Kindred Healthcare shares are held by company insiders. Comparatively, 19.9% of Select Medical Holdings Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Kindred Healthcare and Select Medical Holdings Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Medical Holdings Corporation||1.95%||9.61%||1.84%|
Volatility & Risk
Kindred Healthcare has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Select Medical Holdings Corporation has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Select Medical Holdings Corporation beats Kindred Healthcare on 11 of the 16 factors compared between the two stocks.
About Kindred Healthcare
Kindred Healthcare, Inc. 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 four 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.
About Select Medical Holdings Corporation
Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. The Company’s segments include specialty hospitals, outpatient rehabilitation, Concentra and Other. The specialty hospitals segment consists of hospitals designed to serve the needs of long term acute patients and hospitals designed to serve patients that require intensive medical rehabilitation care. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. The Concentra segment consists of medical centers and contract services provided at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, physical therapy, veteran’s healthcare, and consumer health services. As of December 31, 2016, the Company had operations in 46 states and the District of Columbia.
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