Financial Analysis: Danaher (NYSE:DHR) vs. Selectis Health (OTCMKTS:GBCS)

Danaher (NYSE:DHR) and Selectis Health (OTCMKTS:GBCS) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Danaher and Selectis Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaher	$24.57 billion	6.07	$3.61 billion	$5.04	41.87
Selectis Health	$39.49 million	0.25	-$2.42 million	($0.27)	-12.04

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

Institutional and Insider Ownership

79.1% of Danaher shares are held by institutional investors. 11.1% of Danaher shares are held by company insiders. Comparatively, 15.2% of Selectis Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Danaher	14.71%	10.81%	6.90%
Selectis Health	-1.87%	N/A	-2.34%

Analyst Ratings

This is a summary of current recommendations and price targets for Danaher and Selectis Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaher	0	3	20	0	2.87
Selectis Health	0	0	0	0	0.00

Danaher currently has a consensus target price of $253.86, suggesting a potential upside of 20.31%. Given Danaher’s stronger consensus rating and higher probable upside, research analysts clearly believe Danaher is more favorable than Selectis Health.

Volatility & Risk

Danaher has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Selectis Health has a beta of -0.99, indicating that its share price is 199% less volatile than the S&P 500.

Summary

Danaher beats Selectis Health on 13 of the 14 factors compared between the two stocks.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.

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.