Reviewing Brookdale Senior Living (NYSE:BKD) and Molina Healthcare (NYSE:MOH)

Molina Healthcare (NYSE:MOHGet Free Report) and Brookdale Senior Living (NYSE:BKDGet Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares Molina Healthcare and Brookdale Senior Living”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Molina Healthcare $45.43 billion 0.23 $472.00 million ($0.18) -1,113.83
Brookdale Senior Living $3.19 billion 0.91 -$262.69 million ($0.58) -21.05

Molina Healthcare has higher revenue and earnings than Brookdale Senior Living. Molina Healthcare 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.

Risk & Volatility

Molina Healthcare has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Molina Healthcare and Brookdale Senior Living, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 2 12 3 0 2.06
Brookdale Senior Living 1 1 5 1 2.75

Molina Healthcare presently has a consensus price target of $202.44, indicating a potential upside of 0.97%. Brookdale Senior Living has a consensus price target of $17.40, indicating a potential upside of 42.54%. Given Brookdale Senior Living’s stronger consensus rating and higher possible upside, analysts plainly believe Brookdale Senior Living is more favorable than Molina Healthcare.

Profitability

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

Net Margins Return on Equity Return on Assets
Molina Healthcare -0.02% 3.73% 0.97%
Brookdale Senior Living -4.53% -15,050.32% -1.09%

Institutional and Insider Ownership

98.5% of Molina Healthcare shares are owned by institutional investors. 1.4% of Molina Healthcare shares are owned by insiders. Comparatively, 0.7% of Brookdale Senior Living shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Molina Healthcare beats Brookdale Senior Living on 9 of the 15 factors compared between the two stocks.

About Molina Healthcare

(Get Free Report)

Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.

About Brookdale Senior Living

(Get Free Report)

Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding, multi-story communities and freestanding, single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company’s residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.

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