Reviewing Selectis Health (OTCMKTS:GBCS) & InnovAge (NASDAQ:INNV)

InnovAge (NASDAQ:INNV) and Selectis Health (OTCMKTS:GBCS) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for InnovAge and Selectis Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	1	2	0	0	1.67
Selectis Health	0	0	0	0	0.00

InnovAge presently has a consensus price target of $7.00, suggesting a potential downside of 15.87%. Given InnovAge’s stronger consensus rating and higher possible upside, equities research analysts clearly believe InnovAge is more favorable than Selectis Health.

Institutional and Insider Ownership

12.3% of InnovAge shares are held by institutional investors. 1.0% of InnovAge shares are held by insiders. Comparatively, 15.2% of Selectis Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares InnovAge and Selectis Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$853.70 million	1.32	-$30.31 million	$0.05	166.40
Selectis Health	$41.44 million	0.34	-$1.02 million	($0.34)	-13.46

Selectis Health has lower revenue, but higher earnings than InnovAge. Selectis Health is trading at a lower price-to-earnings ratio than InnovAge, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

InnovAge has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Selectis Health has a beta of -1.07, indicating that its share price is 207% less volatile than the S&P 500.

Profitability

This table compares InnovAge and Selectis Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	0.71%	2.60%	1.23%
Selectis Health	-2.45%	N/A	-3.03%

Summary

InnovAge beats Selectis Health on 11 of the 13 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.