Critical Analysis: Gentiva Health Services (NASDAQ:GTIV) vs. Amedisys (AMED)

Gentiva Health Services (NASDAQ: GTIV) and Amedisys (NASDAQ:AMED) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Gentiva Health Services and Amedisys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentiva Health Services 0 0 0 0 N/A
Amedisys 0 4 4 0 2.50

Amedisys has a consensus price target of $56.14, suggesting a potential upside of 11.73%. Given Amedisys’ higher possible upside, analysts plainly believe Amedisys is more favorable than Gentiva Health Services.

Institutional and Insider Ownership

98.5% of Amedisys shares are owned by institutional investors. 2.8% of Amedisys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Gentiva Health Services and Amedisys’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gentiva Health Services N/A N/A N/A N/A N/A
Amedisys $1.45 billion 1.17 $105.65 million $1.17 42.95

Amedisys has higher revenue and earnings than Gentiva Health Services.

Profitability

This table compares Gentiva Health Services and Amedisys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gentiva Health Services 1.71% N/A 2.76%
Amedisys 2.70% 13.71% 8.56%

Summary

Amedisys beats Gentiva Health Services on 8 of the 8 factors compared between the two stocks.

About Gentiva Health Services

Gentiva Health Services, Inc. is engaged in providing home health services and hospice services. The Company provides home health and hospice services to more than 350,000 patients from more than 420 community locations. Its full range of clinical services includes: skilled nursing, physical, occupational and speech-language therapy, cardiac and pulmonary care, neurorehabilitation, wound care, disease and pain management, medication management and education, patient education to promote self-management, treatment for balance problems that can lead to fall risks and hospice services. The Company’s Hospice segment serves terminally ill patients and their families through more than 150 locations operating in 29 states. Hospice operations are also organized in a single division, which is staffed with clinical, operational, human resource, finance and sales teams.

About Amedisys

Amedisys, Inc. is a healthcare services company. The Company’s segments are Home Health, Hospice, Personal Care and Other. The Company is a provider of home health, hospice and personal care services. As of December 31, 2016, the Company owned and operated 327 Medicare-certified home healthcare centers, 79 Medicare-certified hospice care centers and 14 personal-care care centers in 34 states within the United States and the District of Columbia. The Company’s Home Health segment provides compassionate healthcare to help its patients recover from surgery or illness, live with chronic diseases, and prevent avoidable hospital readmissions. The Hospice segment provides support for those who are dealing with a terminal illness. The Personal care segment provides patients with assistance with the essential activities of daily living.

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