Five Star Senior Living (NASDAQ: FVE) and Brookdale Senior Living (NYSE:BKD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Volatility and Risk

Five Star Senior Living has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Valuation and Earnings

This table compares Five Star Senior Living and Brookdale Senior Living’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five Star Senior Living $1.38 billion 0.05 -$21.81 million ($0.51) -2.88
Brookdale Senior Living $4.98 billion 0.36 -$404.39 million ($4.60) -2.10

Five Star Senior Living has higher earnings, but lower revenue than Brookdale Senior Living. Five Star Senior Living is trading at a lower price-to-earnings ratio than Brookdale Senior Living, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Five Star Senior Living and Brookdale Senior Living’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Five Star Senior Living -1.83% -18.10% -5.59%
Brookdale Senior Living -17.85% -0.79% -0.17%

Insider and Institutional Ownership

21.3% of Five Star Senior Living shares are held by institutional investors. Comparatively, 99.6% of Brookdale Senior Living shares are held by institutional investors. 39.8% of Five Star Senior Living shares are held by insiders. Comparatively, 1.5% of Brookdale Senior Living shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Five Star Senior Living and Brookdale Senior Living, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five Star Senior Living 0 0 2 0 3.00
Brookdale Senior Living 0 0 5 0 3.00

Five Star Senior Living presently has a consensus price target of $3.88, suggesting a potential upside of 163.61%. Brookdale Senior Living has a consensus price target of $15.30, suggesting a potential upside of 58.55%. Given Five Star Senior Living’s higher probable upside, analysts clearly believe Five Star Senior Living is more favorable than Brookdale Senior Living.

Summary

Brookdale Senior Living beats Five Star Senior Living on 7 of the 12 factors compared between the two stocks.

Five Star Senior Living Company Profile

Five Star Senior Living Inc., formerly Five Star Quality Care, Inc., operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). The Company’s segments include senior living communities and rehabilitation and wellness. In the senior living communities segment, the Company operates for its own account or manage for the account of others independent living communities, assisted living communities and SNFs that are subject to centralized oversight and provide housing and services to elderly residents. In the rehabilitation and wellness segment, the Company provides services in the inpatient setting and in outpatient clinics. As of December 31, 2016, the Company operated 283 senior living communities located in 32 states with 31,830 living units, including 253 primarily independent and assisted living communities with 29,229 living units and 30 SNFs with 2,601 living units.

Brookdale Senior Living Company Profile

Brookdale Senior Living Inc. operates senior living communities in the United States. The Company operates independent living, assisted living and dementia-care communities, and continuing care retirement centers (CCRCs). It operates through five segments: Retirement Centers; Assisted Living; CCRCs-Rental; Brookdale Ancillary Services and Management Services. The Retirement Centers segment includes owned or leased communities for middle to upper income seniors. The Assisted Living segment includes owned or leased communities that offer housing and round the clock assistance with activities of daily life to mid-acuity frail and elderly residents. The CCRCs-Rental segment includes leased communities that offer living arrangements to accommodate physical ability and health. The Brookdale Ancillary Services segment includes outpatient therapy, home health and hospice services, as well as education and wellness programs. The Management Services segment includes communities operated by it.

Receive News & Ratings for Five Star Senior Living Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Five Star Senior Living and related companies with MarketBeat.com's FREE daily email newsletter.