Head to Head Analysis: Genesis Healthcare (GEN) and Civitas Solutions (CIVI)

Civitas Solutions (NYSE: CIVI) and Genesis Healthcare (NYSE:GEN) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

93.1% of Civitas Solutions shares are owned by institutional investors. Comparatively, 14.4% of Genesis Healthcare shares are owned by institutional investors. 5.3% of Civitas Solutions shares are owned by insiders. Comparatively, 57.6% of Genesis Healthcare shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Civitas Solutions and Genesis Healthcare’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Civitas Solutions $1.46 billion 0.46 $150.24 million $0.53 34.15
Genesis Healthcare $5.45 billion 0.02 $450.30 million N/A N/A

Genesis Healthcare has higher revenue and earnings than Civitas Solutions.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Civitas Solutions and Genesis Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Civitas Solutions 0 0 2 0 3.00
Genesis Healthcare 1 1 1 0 2.00

Civitas Solutions currently has a consensus price target of $25.00, suggesting a potential upside of 38.12%. Genesis Healthcare has a consensus price target of $2.65, suggesting a potential upside of 143.12%. Given Genesis Healthcare’s higher probable upside, analysts plainly believe Genesis Healthcare is more favorable than Civitas Solutions.

Profitability

This table compares Civitas Solutions and Genesis Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Civitas Solutions 1.35% 17.01% 2.51%
Genesis Healthcare -2.05% -0.81% -0.96%

Volatility & Risk

Civitas Solutions has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Genesis Healthcare has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Summary

Civitas Solutions beats Genesis Healthcare on 7 of the 12 factors compared between the two stocks.

About Civitas Solutions

Civitas Solutions, Inc. is a provider of home- and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. The Company operates through two segments: Human Services and Post-Acute Specialty Rehabilitation Services (SRS). The Human Services segment provides home- and community-based human services to individuals with intellectual and/or developmental disabilities (I/DD), youth with emotional, behavioral and/or medically complex challenges or at-risk youth (ARY), and elders. The SRS segment delivers healthcare and community-based health and human services to individuals having suffered acquired brain injury, spinal injuries, and other catastrophic injuries and illnesses. Within its SRS segment, its NeuroRestorative business unit is focused on rehabilitation and transitional living services, and its CareMeridian business unit is focused on the medically-intensive post-acute care services.

About Genesis Healthcare

Genesis Healthcare, Inc. is a holding company that provides post-acute care. The Company operates through three segments: inpatient services, which includes the operation of skilled nursing facilities and assisted or senior living facilities; rehabilitation therapy services, which includes its integrated and third-party rehabilitation and respiratory therapy services, and all other services. As of December 31, 2016, the Company offered inpatient services through its network of 499 skilled nursing and assisted/senior living facilities across 34 states, consisting of 473 skilled nursing facilities and 26 stand-alone assisted/senior living facilities. Its services focus primarily on the medical and physical issues facing elderly patients and are provided by its skilled nursing companies, assisted or senior living communities, integrated and third-party rehabilitation therapy business, and other ancillary services.

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