Analyzing Five Star Senior Living (NASDAQ:FVE) & Genesis Healthcare (OTCMKTS:GENN)

Five Star Senior Living (NASDAQ:FVE) and Genesis Healthcare (OTCMKTS:GENN) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Five Star Senior Living and Genesis Healthcare’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five Star Senior Living $1.16 billion 0.15 -$7.59 million $0.33 16.79
Genesis Healthcare $3.91 billion 0.01 -$58.96 million N/A N/A

Five Star Senior Living has higher earnings, but lower revenue than Genesis Healthcare.

Profitability

This table compares Five Star Senior Living and Genesis Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Five Star Senior Living 1.14% 6.19% 2.90%
Genesis Healthcare -1.51% N/A -1.41%

Institutional & Insider Ownership

39.4% of Five Star Senior Living shares are owned by institutional investors. Comparatively, 2.3% of Genesis Healthcare shares are owned by institutional investors. 7.0% of Five Star Senior Living shares are owned by insiders. Comparatively, 36.6% of Genesis Healthcare shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Five Star Senior Living has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Genesis Healthcare has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Five Star Senior Living and Genesis Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five Star Senior Living 0 0 1 0 3.00
Genesis Healthcare 0 0 0 0 N/A

Five Star Senior Living currently has a consensus price target of $8.00, indicating a potential upside of 44.40%. Given Five Star Senior Living’s higher probable upside, analysts plainly believe Five Star Senior Living is more favorable than Genesis Healthcare.

Summary

Five Star Senior Living beats Genesis Healthcare on 9 of the 12 factors compared between the two stocks.

About Five Star Senior Living

Five Star Senior Living Inc. operates and manages senior living communities in the United States. It operates through Senior Living, and Rehabilitation and Wellness segments. Its senior living communities comprise independent living communities, assisted living communities, continuing care retirement communities (CCRCs), skilled nursing facilities (SNFs), and an active adult community. The company offers nursing and healthcare services; and rehabilitation and wellness services. As of December 31, 2020, it operated 268 senior living communities consisting of 29,271 living units comprising 243 primarily independent and assisted living communities with 28,316 living units, and 9 SNFs with 955 living units located in 31 states. The company was formerly known as Five Star Quality Care, Inc. and changed its name to Five Star Senior Living Inc. in March 2017. Five Star Senior Living Inc. was founded in 2001 and is headquartered in Newton, Massachusetts.

About Genesis Healthcare

Genesis Healthcare, Inc., together with its subsidiaries, owns and operates skilled nursing facilities and assisted/senior living facilities in the United States. The company operates through three segments: Inpatient Services; Rehabilitation Therapy Services; and Other Services. It also provides a range of rehabilitation therapy services, including speech-language pathology, physical therapy, occupational therapy, and respiratory therapy. In addition, the company offers other specialty medical services, such as physician, staffing, and other healthcare related services. As of December 31, 2020, it provided inpatient services through a network of approximately 341 skilled nursing facilities and assisted/senior living communities in 24 states; and supplied rehabilitation and respiratory therapy to approximately 1,400 healthcare locations in 42 states, the District of Columbia and China. The company was formerly known as FC-GEN Operations Investment, LLC and changed its name to Genesis HealthCare, Inc. in February 2015. Genesis HealthCare, Inc. was founded in 2003 and is headquartered in Kennett Square, Pennsylvania.

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