Contrasting Extendicare (OTCMKTS:EXETF) and DaVita (NYSE:DVA)

Extendicare (OTCMKTS:EXETF) and DaVita (NYSE:DVA) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Valuation and Earnings

This table compares Extendicare and DaVita”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extendicare	N/A	N/A	N/A	($0.26)	-97.44
DaVita	$13.64 billion	1.13	$746.80 million	$10.78	22.26

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

Insider & Institutional Ownership

9.4% of Extendicare shares are held by institutional investors. Comparatively, 90.1% of DaVita shares are held by institutional investors. 1.9% of DaVita shares are held by company 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.

Profitability

This table compares Extendicare and DaVita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extendicare	N/A	N/A	N/A
DaVita	5.65%	-270.37%	4.87%

Analyst Recommendations

This is a breakdown of recent ratings for Extendicare and DaVita, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extendicare	0	0	5	0	3.00
DaVita	1	5	2	0	2.12

DaVita has a consensus price target of $216.50, suggesting a potential downside of 9.79%. Given DaVita’s higher probable upside, analysts plainly believe DaVita is more favorable than Extendicare.

Summary

DaVita beats Extendicare on 8 of the 11 factors compared between the two stocks.

About Extendicare

Extendicare Inc., through its subsidiaries, provides care and services for seniors in Canada. The company offers long term care (LTC) services; and home health care services, such as nursing care, occupational, physical and speech therapy, and assistance with daily activities, as well as management, consulting, and other services to third parties. It operates through the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. The company was incorporated in 1968 and is based in Markham, Canada.

About DaVita

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.