AdaptHealth (NASDAQ:AHCO) & The Ensign Group (NASDAQ:ENSG) Critical Review

The Ensign Group (NASDAQ:ENSG – Get Free Report) and AdaptHealth (NASDAQ:AHCO – Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Valuation & Earnings

This table compares The Ensign Group and AdaptHealth”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Ensign Group $5.67 billion 1.86 $343.97 million $6.72 26.89
AdaptHealth $3.24 billion 0.31 -$70.79 million ($3.00) -2.48

The Ensign Group has higher revenue and earnings than AdaptHealth. AdaptHealth is trading at a lower price-to-earnings ratio than The Ensign Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

The Ensign Group has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, AdaptHealth has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

96.1% of The Ensign Group shares are held by institutional investors. Comparatively, 82.7% of AdaptHealth shares are held by institutional investors. 4.0% of The Ensign Group shares are held by company insiders. Comparatively, 1.9% of AdaptHealth shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares The Ensign Group and AdaptHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Ensign Group 7.03% 16.79% 7.07%
AdaptHealth -12.90% -0.27% -0.09%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for The Ensign Group and AdaptHealth, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Ensign Group 0 2 4 0 2.67
AdaptHealth 1 1 7 0 2.67

The Ensign Group currently has a consensus target price of $226.00, indicating a potential upside of 25.08%. AdaptHealth has a consensus target price of $9.43, indicating a potential upside of 26.80%. Given AdaptHealth’s higher probable upside, analysts plainly believe AdaptHealth is more favorable than The Ensign Group.

Summary

The Ensign Group beats AdaptHealth on 10 of the 13 factors compared between the two stocks.

About The Ensign Group

(Get Free Report)

The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The company's Skilled Services segment engages in the operation of skilled nursing facilities and rehabilitation therapy services for patients with chronic conditions, prolonged illness, and the elderly; and offers nursing facilities including specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management, as well as standard services comprising room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. Its Standard Bearer segment is comprised of selected real estate properties owned by Standard Bearer and leased to skilled nursing and senior living operators. In addition, the company provides ancillary services consisting of digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, and long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities, as well as mobile diagnostics. It operates in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.

About AdaptHealth

(Get Free Report)

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.

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