Diversicare Healthcare Services (OTCMKTS:DVCR) and National HealthCare (NYSE:NHC) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Volatility & Risk

Diversicare Healthcare Services has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, National HealthCare has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares Diversicare Healthcare Services and National HealthCare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diversicare Healthcare Services -1.55% N/A -0.44%
National HealthCare 3.41% 7.76% 4.59%

Earnings and Valuation

This table compares Diversicare Healthcare Services and National HealthCare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diversicare Healthcare Services $475.02 million 0.03 -$36.06 million N/A N/A
National HealthCare $996.38 million 0.98 $68.21 million N/A N/A

National HealthCare has higher revenue and earnings than Diversicare Healthcare Services.

Insider & Institutional Ownership

46.8% of National HealthCare shares are held by institutional investors. 35.1% of Diversicare Healthcare Services shares are held by insiders. Comparatively, 13.1% of National HealthCare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Diversicare Healthcare Services and National HealthCare, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diversicare Healthcare Services 0 0 0 0 N/A
National HealthCare 0 0 0 0 N/A

Summary

National HealthCare beats Diversicare Healthcare Services on 8 of the 10 factors compared between the two stocks.

About Diversicare Healthcare Services

Diversicare Healthcare Services, Inc. provides post-acute care services to skilled nursing centers, patients, and residents primarily in the Southeast, Midwest, and Southwest United States. The company offers skilled nursing health care services, including nutrition, recreational therapy, social, housekeeping, and laundry services; the delivery of ancillary medical services at the nursing centers; rehabilitation therapy services, such as audiology, speech, occupational, and physical therapies; and medical supplies, nutritional support, infusion therapies, and related clinical services. As of December 31, 2019, it operated 62 nursing centers with 7,329 licensed nursing beds. The company was formerly known as Advocat Inc. and changed its name to Diversicare Healthcare Services, Inc. in March 2013. Diversicare Healthcare Services, Inc. was founded in 1994 and is based in Brentwood, Tennessee.

About National HealthCare

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, and home health care programs. Its skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, such as physical, speech, respiratory, and occupational therapy for patients recovering from strokes, heart attacks, orthopedic conditions, neurological illnesses, or other illnesses, injuries, or disabilities. The company's medical specialty units comprise memory care units and subacute nursing units that provide specialized care and programs for persons with Alzheimer's or related disorders; and assisted living centers offer personal care services and assistance with general activities of daily living, such as dressing, bathing, meal preparation, and medication management. It also owns, leases, and manages independent living facilities that provide specially designed residential units for the active and ambulatory elderly, as well as offers various ancillary services for its residents, including restaurants, activity rooms, and social areas. In addition, it provides health care programs that offer skilled services, such as infusion, wound care and physical, occupational, and speech therapies; operates pharmacies; offers management, accounting, financial, and insurance services; and leases its properties to third party operators. As of December 31, 2019, the company operated 75 skilled nursing facilities with 9,513 licensed beds; 25 assisted living facilities; 5 independent living facilities; 35 homecare programs; and 4 pharmacy locations. National HealthCare Corporation was founded in 1971 and is based in Murfreesboro, Tennessee.

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