Kindred Healthcare (NYSE: KND) is one of 50 public companies in the “Healthcare Facilities & Services” industry, but how does it compare to its competitors? We will compare Kindred Healthcare to similar companies based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, risk, profitability and valuation.

Institutional & Insider Ownership

88.1% of Kindred Healthcare shares are held by institutional investors. Comparatively, 69.8% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 3.0% of Kindred Healthcare shares are held by company insiders. Comparatively, 14.7% of shares of all “Healthcare Facilities & Services” companies 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kindred Healthcare and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kindred Healthcare 3 4 1 0 1.75
Kindred Healthcare Competitors 266 1582 1975 38 2.46

Kindred Healthcare currently has a consensus target price of $8.71, indicating a potential upside of 28.15%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 8.95%. Given Kindred Healthcare’s higher probable upside, analysts clearly believe Kindred Healthcare is more favorable than its competitors.

Profitability

This table compares Kindred Healthcare and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kindred Healthcare -16.31% 3.49% 0.53%
Kindred Healthcare Competitors 9.33% 0.44% 0.55%

Earnings and Valuation

This table compares Kindred Healthcare and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kindred Healthcare $7.08 billion $470.57 million -0.53
Kindred Healthcare Competitors $6.12 billion $881.66 million 35.54

Kindred Healthcare has higher revenue, but lower earnings than its competitors. Kindred Healthcare is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Kindred Healthcare has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Kindred Healthcare’s competitors have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Dividends

Kindred Healthcare pays an annual dividend of $0.24 per share and has a dividend yield of 3.5%. Kindred Healthcare pays out -1.9% of its earnings in the form of a dividend. As a group, “Healthcare Facilities & Services” companies pay a dividend yield of 1.0% and pay out 58.7% of their earnings in the form of a dividend. Kindred Healthcare is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Kindred Healthcare competitors beat Kindred Healthcare on 8 of the 15 factors compared.

About Kindred Healthcare

Kindred Healthcare, Inc., incorporated on March 27, 1998, 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 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.

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