Acadia Healthcare (NASDAQ: ACHC) and China Cord Blood Corporation (NYSE:CO) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Acadia Healthcare and China Cord Blood Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadia Healthcare 0 3 8 1 2.83
China Cord Blood Corporation 0 0 0 0 N/A

Acadia Healthcare currently has a consensus price target of $59.09, suggesting a potential upside of 28.40%. Given Acadia Healthcare’s higher probable upside, analysts clearly believe Acadia Healthcare is more favorable than China Cord Blood Corporation.

Valuation and Earnings

This table compares Acadia Healthcare and China Cord Blood Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Acadia Healthcare $2.83 billion 1.43 $574.61 million $0.09 511.33
China Cord Blood Corporation $122.77 million 10.34 $52.40 million $0.29 38.55

Acadia Healthcare has higher revenue and earnings than China Cord Blood Corporation. China Cord Blood Corporation is trading at a lower price-to-earnings ratio than Acadia Healthcare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Acadia Healthcare and China Cord Blood Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acadia Healthcare 0.30% 8.69% 3.16%
China Cord Blood Corporation 22.07% 8.64% 3.50%

Risk & Volatility

Acadia Healthcare has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, China Cord Blood Corporation has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Insider and Institutional Ownership

13.3% of China Cord Blood Corporation shares are owned by institutional investors. 11.1% of Acadia Healthcare shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Acadia Healthcare beats China Cord Blood Corporation on 9 of the 14 factors compared between the two stocks.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.

China Cord Blood Corporation Company Profile

China Cord Blood Corporation is a provider of cord blood banking services in China. The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China. It provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. It also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The Company provides cord blood processing and storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies, such as cord blood transplants. It also preserves cord blood units donated by the public; provides matching services on such donated units, and delivers matching units to patients in need of transplants. As of March 31, 2016, the Company had three operating cord blood banks.

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