MEDNAX (NYSE: MD) and Kindred Healthcare (NYSE:KND) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Kindred Healthcare pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. MEDNAX does not pay a dividend. Kindred Healthcare pays out -2.5% of its earnings in the form of a dividend.
MEDNAX has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
This table compares MEDNAX and Kindred Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares MEDNAX and Kindred Healthcare’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MEDNAX||$3.46 billion||1.56||$320.37 million||$3.45||16.69|
|Kindred Healthcare||$6.03 billion||0.14||-$698.35 million||($4.88)||-1.94|
MEDNAX has higher earnings, but lower revenue than Kindred Healthcare. Kindred Healthcare is trading at a lower price-to-earnings ratio than MEDNAX, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for MEDNAX and Kindred Healthcare, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MEDNAX currently has a consensus price target of $54.45, suggesting a potential downside of 5.43%. Kindred Healthcare has a consensus price target of $8.83, suggesting a potential downside of 6.53%. Given MEDNAX’s stronger consensus rating and higher probable upside, equities analysts plainly believe MEDNAX is more favorable than Kindred Healthcare.
Insider and Institutional Ownership
98.9% of MEDNAX shares are held by institutional investors. Comparatively, 86.8% of Kindred Healthcare shares are held by institutional investors. 2.4% of MEDNAX shares are held by insiders. Comparatively, 3.0% of Kindred Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
MEDNAX beats Kindred Healthcare on 11 of the 16 factors compared between the two stocks.
MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company’s national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.
About Kindred Healthcare
Kindred Healthcare, Inc., incorporated on March 27, 1998, is a healthcare services company. The Company, through its subsidiaries, operates transitional care (TC) hospitals, a home health, hospice and community care business, inpatient rehabilitation hospitals (IRFs), a contract rehabilitation services business, nursing centers and assisted living facilities across the United States. The Company operates through divisions: the Kindred at Home division, the hospital division, the Kindred Rehabilitation Services division and the nursing center division. These divisions represent six segments: home health services, hospice services, hospitals, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The home health services and hospice services operating segments are contained within the Kindred at Home division while the Kindred Hospital Rehabilitation Services and RehabCare operating segments are both contained within the Kindred Rehabilitation Services division.
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