The Ensign Group (NASDAQ:ENSG) and Alcon (NYSE:ALC) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Valuation and Earnings
This table compares The Ensign Group and Alcon'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 | $2.04 billion | 2.24 | $110.53 million | $2.09 | 39.82 |
Alcon | $7.51 billion | 4.58 | $-656,000,000.00 | $1.89 | 37.27 |
The Ensign Group has higher earnings, but lower revenue than Alcon. Alcon 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.
Profitability
This table compares The Ensign Group and Alcon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Ensign Group | 6.49% | 21.65% | 6.28% |
Alcon | -10.53% | 2.80% | 1.94% |
Risk & Volatility
The Ensign Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Alcon has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for The Ensign Group and Alcon, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Ensign Group | 0 | 1 | 3 | 0 | 2.75 |
Alcon | 3 | 7 | 8 | 0 | 2.28 |
The Ensign Group currently has a consensus target price of $63.80, indicating a potential downside of 23.23%. Alcon has a consensus target price of $65.80, indicating a potential downside of 6.84%. Given Alcon's higher probable upside, analysts clearly believe Alcon is more favorable than The Ensign Group.
Insider & Institutional Ownership
78.6% of The Ensign Group shares are owned by institutional investors. Comparatively, 46.5% of Alcon shares are owned by institutional investors. 6.8% of The Ensign Group shares are owned by insiders. Comparatively, 1.5% of Alcon shares are owned 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.
Summary
The Ensign Group beats Alcon on 10 of the 14 factors compared between the two stocks.