Capital Senior Living Corporation (NYSE: CSU) and Genesis Healthcare (NYSE:SKH) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Profitability

This table compares Capital Senior Living Corporation and Genesis Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital Senior Living Corporation -10.28% -6.73% -0.62%
Genesis Healthcare -7.87% N/A -7.55%

Earnings & Valuation

This table compares Capital Senior Living Corporation and Genesis Healthcare’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Capital Senior Living Corporation $458.22 million 0.82 $77.74 million ($1.62) -7.82
Genesis Healthcare N/A N/A N/A N/A N/A

Capital Senior Living Corporation has higher revenue and earnings than Genesis Healthcare.

Insider and Institutional Ownership

97.5% of Capital Senior Living Corporation shares are held by institutional investors. 7.1% of Capital Senior Living Corporation shares are held 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.

Analyst Ratings

This is a breakdown of recent recommendations for Capital Senior Living Corporation and Genesis Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital Senior Living Corporation 0 2 1 0 2.33
Genesis Healthcare 0 0 0 0 N/A

Capital Senior Living Corporation presently has a consensus target price of $18.00, indicating a potential upside of 42.07%. Given Capital Senior Living Corporation’s higher possible upside, research analysts clearly believe Capital Senior Living Corporation is more favorable than Genesis Healthcare.

Summary

Capital Senior Living Corporation beats Genesis Healthcare on 6 of the 8 factors compared between the two stocks.

About Capital Senior Living Corporation

Capital Senior Living Corporation is an operator of senior housing communities in the United States. The Company provides senior living services to the elderly, including independent living and assisted living services, and provides home care services at one of its communities. Its continuum of care integrates independent living and assisted living and is bridged by home care through independent home care agencies or its home care agency, sustains residents’ autonomy and independence based on their physical and mental abilities. As of December 31, 2016, it operated 129 senior housing communities in 23 states with an aggregate capacity of approximately 16,500 residents, including 79 senior housing communities, which it owned and 50 senior housing communities it leased. As of December 31, 2016, it also operated one home care agency. It offers assisted living care and services, including personal care services, around the clock staffing, support services and supplemental services.

About Genesis Healthcare

Genesis Healthcare, Inc. is a holding company that provides post-acute care. The Company operates through three segments: inpatient services, which includes the operation of skilled nursing facilities and assisted or senior living facilities; rehabilitation therapy services, which includes its integrated and third-party rehabilitation and respiratory therapy services, and all other services. As of December 31, 2016, the Company offered inpatient services through its network of 499 skilled nursing and assisted/senior living facilities across 34 states, consisting of 473 skilled nursing facilities and 26 stand-alone assisted/senior living facilities. Its services focus primarily on the medical and physical issues facing elderly patients and are provided by its skilled nursing companies, assisted or senior living communities, integrated and third-party rehabilitation therapy business, and other ancillary services.

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