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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Brookdale Senior Living and Emeritus Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookdale Senior Living 0 0 4 0 3.00
Emeritus Corporation 0 0 0 0 N/A

Brookdale Senior Living currently has a consensus target price of C$15.13, suggesting a potential upside of 47.85%.

Valuation and Earnings

This table compares Brookdale Senior Living and Emeritus Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Brookdale Senior Living $4.98 billion 0.38 -$404.39 million C($4.60) -2.22
Emeritus Corporation N/A N/A N/A ($3.16) N/A

Emeritus Corporation has higher revenue, but lower earnings than Brookdale Senior Living. Brookdale Senior Living is trading at a lower price-to-earnings ratio than Emeritus Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.3% of Brookdale Senior Living shares are held by institutional investors. 1.5% of Brookdale Senior Living shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Brookdale Senior Living and Emeritus Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookdale Senior Living -17.85% -0.79% -0.17%
Emeritus Corporation N/A N/A N/A

Brookdale Senior Living Company Profile

Brookdale Senior Living Inc. operates senior living communities in the United States. The Company operates independent living, assisted living and dementia-care communities, and continuing care retirement centers (CCRCs). It operates through five segments: Retirement Centers; Assisted Living; CCRCs-Rental; Brookdale Ancillary Services and Management Services. The Retirement Centers segment includes owned or leased communities for middle to upper income seniors. The Assisted Living segment includes owned or leased communities that offer housing and round the clock assistance with activities of daily life to mid-acuity frail and elderly residents. The CCRCs-Rental segment includes leased communities that offer living arrangements to accommodate physical ability and health. The Brookdale Ancillary Services segment includes outpatient therapy, home health and hospice services, as well as education and wellness programs. The Management Services segment includes communities operated by it.

Emeritus Corporation Company Profile

Emeritus Corporation (Emeritus) is engaged in operations of senior living communities in the United States. The Company owns and operates a portfolio of communities providing services to its residents, including independent living, assisted living, specialized memory care, and, to a lesser extent, skilled nursing care. The Company provides a variety of supportive living services in a professionally staffed environment that enables seniors to live with dignity and independence. During the year ending December 31, 2012, the Company added home healthcare to its service offerings, through its acquisition of Florida-based Nurse on Call, Inc. (NOC). As of December 31, 2012, the Company operated 483 senior living communities in 45 states. The communities consisted of approximately 43,000 residential rooms or suites (collectively units) with a resident capacity for approximately 50,100 residents.

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