Kindred Healthcare (NYSE: KND) and MEDNAX (NYSE:MD) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Insider and Institutional Ownership
89.0% of Kindred Healthcare shares are owned by institutional investors. Comparatively, 98.5% of MEDNAX shares are owned by institutional investors. 3.0% of Kindred Healthcare shares are owned by company insiders. Comparatively, 2.4% of MEDNAX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Kindred Healthcare and MEDNAX’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kindred Healthcare||$6.03 billion||0.14||-$698.35 million||($7.97)||-1.16|
|MEDNAX||$3.46 billion||1.53||$320.37 million||$3.45||16.39|
MEDNAX has lower revenue, but higher earnings than Kindred Healthcare. Kindred Healthcare is trading at a lower price-to-earnings ratio than MEDNAX, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Kindred Healthcare and MEDNAX, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kindred Healthcare presently has a consensus target price of $8.83, indicating a potential downside of 4.71%. MEDNAX has a consensus target price of $55.18, indicating a potential downside of 2.38%. Given MEDNAX’s stronger consensus rating and higher possible upside, analysts plainly believe MEDNAX is more favorable than Kindred Healthcare.
This table compares Kindred Healthcare and MEDNAX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Kindred Healthcare has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, MEDNAX has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.
MEDNAX beats Kindred Healthcare on 10 of the 14 factors compared between the two stocks.
Kindred Healthcare Company Profile
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.
MEDNAX Company Profile
MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company’s national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.
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