Brookdale Senior Living (NYSE:BKD – Get Free Report) and Molina Healthcare (NYSE:MOH – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Brookdale Senior Living and Molina Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookdale Senior Living | -4.53% | -15,050.32% | -1.09% |
| Molina Healthcare | -0.02% | 3.73% | 0.97% |
Risk and Volatility
Brookdale Senior Living has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Molina Healthcare has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookdale Senior Living | $3.19 billion | 0.91 | -$262.69 million | ($0.58) | -21.05 |
| Molina Healthcare | $45.43 billion | 0.23 | $472.00 million | ($0.18) | -1,113.83 |
Molina Healthcare has higher revenue and earnings than Brookdale Senior Living. Molina Healthcare is trading at a lower price-to-earnings ratio than Brookdale Senior Living, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Brookdale Senior Living and Molina Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookdale Senior Living | 1 | 1 | 5 | 1 | 2.75 |
| Molina Healthcare | 2 | 12 | 3 | 0 | 2.06 |
Brookdale Senior Living presently has a consensus price target of $17.40, suggesting a potential upside of 42.54%. Molina Healthcare has a consensus price target of $202.44, suggesting a potential upside of 0.97%. Given Brookdale Senior Living’s stronger consensus rating and higher probable upside, equities analysts clearly believe Brookdale Senior Living is more favorable than Molina Healthcare.
Institutional and Insider Ownership
98.5% of Molina Healthcare shares are owned by institutional investors. 0.7% of Brookdale Senior Living shares are owned by company insiders. Comparatively, 1.4% of Molina Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Molina Healthcare beats Brookdale Senior Living on 9 of the 15 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 Molina Healthcare
Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.
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