The Joint Corp. (NASDAQ: JYNT) and HealthSouth Corporation (NYSE:HLS) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Valuation & Earnings

This table compares The Joint Corp. and HealthSouth Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Joint Corp. $22.97 million 2.73 -$4.53 million ($0.87) -5.47
HealthSouth Corporation $3.77 billion 1.21 $817.10 million $2.72 17.04

HealthSouth Corporation has higher revenue and earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than HealthSouth Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares The Joint Corp. and HealthSouth Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Joint Corp. -48.08% -103.25% -42.06%
HealthSouth Corporation 6.70% 25.07% 5.51%

Risk & Volatility

The Joint Corp. has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, HealthSouth Corporation has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

47.0% of The Joint Corp. shares are held by institutional investors. Comparatively, 93.0% of HealthSouth Corporation shares are held by institutional investors. 6.1% of The Joint Corp. shares are held by insiders. Comparatively, 1.6% of HealthSouth Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

HealthSouth Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. The Joint Corp. does not pay a dividend. HealthSouth Corporation pays out 36.8% of its earnings in the form of a dividend. The Joint Corp. has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for The Joint Corp. and HealthSouth Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Joint Corp. 0 0 4 0 3.00
HealthSouth Corporation 1 3 3 0 2.29

The Joint Corp. presently has a consensus price target of $6.15, suggesting a potential upside of 29.20%. HealthSouth Corporation has a consensus price target of $49.83, suggesting a potential upside of 7.52%. Given The Joint Corp.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe The Joint Corp. is more favorable than HealthSouth Corporation.

The Joint Corp. Company Profile

The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.

HealthSouth Corporation Company Profile

HealthSouth Corporation (HealthSouth) is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in 35 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The Company manages its operations through segments, including inpatient rehabilitation, and home health and hospice. It is an owner and operator of inpatient rehabilitation hospitals. It provides specialized rehabilitative treatment on both an inpatient and outpatient basis. It offers its home health and hospice services through Encompass Home Health and Hospice business (Encompass). Encompass operates home health and hospice agencies in 25 states, with concentrations in the Southeast, Oklahoma, and Texas. As of December 31, 2016, the Company operated 123 inpatient rehabilitation hospitals. As of December 31, 2016, the Company managed five inpatient rehabilitation units through management contracts.

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