Omnicare (NYSE: OCR) and Genesis Healthcare (NYSE:GEN) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitabiliy and risk.
Profitability
This table compares Omnicare and Genesis Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omnicare | 1.96% | 5.37% | 2.20% |
| Genesis Healthcare | -1.27% | -0.81% | -0.34% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Omnicare and Genesis Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omnicare | 0 | 0 | 0 | 0 | N/A |
| Genesis Healthcare | 1 | 1 | 1 | 0 | 2.00 |
Genesis Healthcare has a consensus target price of $2.65, suggesting a potential upside of 79.05%. Given Genesis Healthcare’s higher possible upside, analysts clearly believe Genesis Healthcare is more favorable than Omnicare.
Institutional and Insider Ownership
14.4% of Genesis Healthcare shares are held by institutional investors. 57.6% of Genesis Healthcare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Omnicare and Genesis Healthcare’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Omnicare | N/A | N/A | N/A | N/A | N/A |
| Genesis Healthcare | $5.54 billion | 0.02 | $503.52 million | N/A | N/A |
Genesis Healthcare has higher revenue and earnings than Omnicare.
Summary
Genesis Healthcare beats Omnicare on 5 of the 8 factors compared between the two stocks.
About Omnicare
Omnicare, Inc. is a healthcare services company that specializes in the management of complex pharmaceutical care. The Company operates two primary businesses, Long-Term Care Group (LTC) and Specialty Care Group (SCG), each serving different customer populations. Through LTC, the Company is a provider of pharmaceuticals and related pharmacy and ancillary services to long-term care facilities, as well as chronic care facilities and other settings. As of December 31, 2014, LTC provided pharmacy services in the United States in 47 states and the District of Columbia. The Specialty Care Group (SCG) operates across a spectrum of the healthcare continuum, serving the needs of biopharmaceutical manufacturers, physicians, nurses, caregivers and patients. Its SCG services are primarily focused on the specialty pharmaceutical market and incorporate four platforms: brand support services, supply chain solutions, patient support services and specialty pharmacy.
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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