Critical Survey: GeneDx (NASDAQ:WGS) versus Brookdale Senior Living (NYSE:BKD)

Brookdale Senior Living (NYSE:BKD) and GeneDx (NASDAQ:WGS) are both mid-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation and Earnings

This table compares Brookdale Senior Living and GeneDx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookdale Senior Living	$3.05 billion	0.85	-$262.69 million	($0.58)	-18.78
GeneDx	$454.43 million	4.50	-$21.02 million	($3.64)	-18.84

GeneDx has lower revenue, but higher earnings than Brookdale Senior Living. GeneDx 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.

Profitability

This table compares Brookdale Senior Living and GeneDx’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%
GeneDx	-23.41%	4.12%	2.26%

Analyst Ratings

This is a breakdown of recent recommendations for Brookdale Senior Living and GeneDx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookdale Senior Living	1	1	5	1	2.75
GeneDx	1	0	7	1	2.89

Brookdale Senior Living currently has a consensus price target of $17.40, suggesting a potential upside of 59.71%. GeneDx has a consensus price target of $90.86, suggesting a potential upside of 32.52%. Given Brookdale Senior Living’s higher possible upside, equities research analysts plainly believe Brookdale Senior Living is more favorable than GeneDx.

Institutional and Insider Ownership

61.7% of GeneDx shares are held by institutional investors. 0.7% of Brookdale Senior Living shares are held by company insiders. Comparatively, 25.2% of GeneDx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Brookdale Senior Living has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, GeneDx has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Summary

GeneDx beats Brookdale Senior Living on 9 of the 14 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 GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.