Premier (NASDAQ: PINC) and The Ensign Group (NASDAQ:ENSG) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Volatility and Risk
Premier has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, The Ensign Group has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
This is a summary of current recommendations for Premier and The Ensign Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Ensign Group||2||0||3||0||2.20|
Premier currently has a consensus target price of $38.80, suggesting a potential upside of 16.34%. The Ensign Group has a consensus target price of $22.00, suggesting a potential upside of 11.34%. Given Premier’s stronger consensus rating and higher probable upside, analysts plainly believe Premier is more favorable than The Ensign Group.
Valuation & Earnings
This table compares Premier and The Ensign Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Premier||$1.35 billion||1.28||$395.31 million||$0.07||476.50|
|The Ensign Group||$1.75 billion||0.57||$121.76 million||$0.84||23.52|
Premier has higher revenue, but lower earnings than The Ensign Group. The Ensign Group is trading at a lower price-to-earnings ratio than Premier, indicating that it is currently the more affordable of the two stocks.
The Ensign Group pays an annual dividend of $0.17 per share and has a dividend yield of 0.9%. Premier does not pay a dividend. The Ensign Group pays out 20.2% of its earnings in the form of a dividend.
Insider & Institutional Ownership
84.7% of The Ensign Group shares are held by institutional investors. 17.1% of Premier shares are held by insiders. Comparatively, 6.2% of The Ensign Group shares are held 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.
This table compares Premier and The Ensign Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Ensign Group||2.54%||13.01%||6.14%|
Premier beats The Ensign Group on 9 of the 16 factors compared between the two stocks.
Premier Company Profile
Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,750 United States hospitals and more than 130,000 other provider organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.
The Ensign Group Company Profile
The Ensign Group, Inc., through its operating subsidiaries, provides healthcare services across the post-acute care continuum, as well as other ancillary businesses located in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, Oregon, South Carolina, Texas, Utah, Washington and Wisconsin. The Company’s subsidiaries provide skilled nursing, assisted living, home health and hospice, and other ancillary services. Its segments include transitional and skilled services segment, which includes the operation of skilled nursing facilities; assisted and independent living services segment, which includes the operation of assisted and independent living facilities; home health and hospice services segment, which includes its home health, home care and hospice businesses, and all other segment, which includes mobile diagnostics and other ancillary operations. As of July10, 2017, it operated in 226 healthcare facilities.
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