The Ensign Group (NASDAQ:ENSG) and National HealthCare (NYSEAMERICAN:NHC) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Insider and Institutional Ownership
78.6% of The Ensign Group shares are owned by institutional investors. Comparatively, 44.2% of National HealthCare shares are owned by institutional investors. 6.8% of The Ensign Group shares are owned by company insiders. Comparatively, 13.1% of National HealthCare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for The Ensign Group and National HealthCare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Ensign Group | 0 | 1 | 3 | 0 | 2.75 |
National HealthCare | 0 | 0 | 0 | 0 | N/A |
The Ensign Group presently has a consensus price target of $63.80, indicating a potential downside of 23.24%. Given The Ensign Group's higher probable upside, research analysts clearly believe The Ensign Group is more favorable than National HealthCare.
Earnings and Valuation
This table compares The Ensign Group and National HealthCare'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 | 2.22 | $110.53 million | $2.09 | 39.51 |
National HealthCare | $996.38 million | 1.08 | $68.21 million | N/A | N/A |
The Ensign Group has higher revenue and earnings than National HealthCare.
Dividends
The Ensign Group pays an annual dividend of $0.21 per share and has a dividend yield of 0.3%. National HealthCare pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. The Ensign Group pays out 10.0% of its earnings in the form of a dividend. The Ensign Group has raised its dividend for 1 consecutive years and National HealthCare has raised its dividend for 1 consecutive years.
Volatility & Risk
The Ensign Group has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, National HealthCare has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.
Profitability
This table compares The Ensign Group and National HealthCare'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% |
National HealthCare | 2.75% | 7.82% | 4.60% |
Summary
The Ensign Group beats National HealthCare on 10 of the 14 factors compared between the two stocks.