Head to Head Review: Brookdale Senior Living (NYSE:BKD) & The Ensign Group (NASDAQ:ENSG)

Brookdale Senior Living (NYSE:BKD) and The Ensign Group (NASDAQ:ENSG) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookdale Senior Living	-7.52%	-79.84%	-3.33%
The Ensign Group	6.99%	16.90%	6.56%

Institutional and Insider Ownership

96.1% of The Ensign Group shares are owned by institutional investors. 1.8% of Brookdale Senior Living shares are owned by company insiders. Comparatively, 3.9% of The Ensign Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Brookdale Senior Living has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, The Ensign Group has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookdale Senior Living	$3.13 billion	0.51	-$201.93 million	($1.04)	-6.56
The Ensign Group	$4.26 billion	2.07	$297.97 million	$5.29	29.03

The Ensign Group has higher revenue and earnings than Brookdale Senior Living. Brookdale Senior Living 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.

Analyst Recommendations

This is a summary of current ratings for Brookdale Senior Living and The Ensign Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookdale Senior Living	1	1	3	0	2.40
The Ensign Group	0	1	5	0	2.83

Brookdale Senior Living presently has a consensus target price of $7.70, suggesting a potential upside of 12.84%. The Ensign Group has a consensus target price of $163.50, suggesting a potential upside of 6.47%. Given Brookdale Senior Living’s higher possible upside, analysts clearly believe Brookdale Senior Living is more favorable than The Ensign Group.

Summary

The Ensign Group beats Brookdale Senior Living on 13 of the 14 factors compared between the two stocks.

About Brookdale Senior Living

Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding, multi-story communities and freestanding, single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company’s residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.

About The Ensign Group

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.