Addus HomeCare Corporation (NASDAQ: ADUS) and AdCare Health Systems (NYSE:ADK) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitabiliy, earnings, risk, institutional ownership, dividends and valuation.
Analyst Ratings
This is a summary of current ratings for Addus HomeCare Corporation and AdCare Health Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Addus HomeCare Corporation | 0 | 0 | 1 | 0 | 3.00 |
| AdCare Health Systems | 0 | 0 | 0 | 0 | N/A |
Addus HomeCare Corporation currently has a consensus price target of $30.00, indicating a potential downside of 15.49%. Given Addus HomeCare Corporation’s higher possible upside, equities analysts clearly believe Addus HomeCare Corporation is more favorable than AdCare Health Systems.
Insider & Institutional Ownership
92.6% of Addus HomeCare Corporation shares are owned by institutional investors. 35.8% of Addus HomeCare Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Addus HomeCare Corporation and AdCare Health Systems’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Addus HomeCare Corporation | $409.69 million | 0.99 | $31.98 million | $1.41 | 25.18 |
| AdCare Health Systems | $26.39 million | 0.79 | $10.75 million | N/A | N/A |
Addus HomeCare Corporation has higher revenue and earnings than AdCare Health Systems.
Profitability
This table compares Addus HomeCare Corporation and AdCare Health Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Addus HomeCare Corporation | 3.94% | 10.29% | 6.79% |
| AdCare Health Systems | -8.79% | N/A | -1.91% |
Summary
Addus HomeCare Corporation beats AdCare Health Systems on 10 of the 10 factors compared between the two stocks.
Addus HomeCare Corporation Company Profile
Addus HomeCare Corporation is a provider of personal care services, which are provided primarily in the home. The Company’s personal care services include assistance with bathing, grooming, oral care, skincare, assistance with feeding and dressing, medication reminders, meal planning and preparation, housekeeping and transportation services and other activities of daily living. The Company provides these non-medical services on a long-term, continuous basis. As of December 31, 2016, the Company delivered services to its consumers through 114 individual agencies located in 24 states and three adult day services centers in Illinois. Its services, which include non-medical care, such as personal care services, are provided to consumers who are unable to independently perform some or all of their activities of daily living.
AdCare Health Systems Company Profile
AdCare Health Systems, Inc., through its subsidiaries, is a self-managed real estate investment company that invests in real estate purposed for long-term care and senior living. The Company’s business principally consists of leasing and subleasing such facilities to third-party tenants, which operate the facilities. The Company owns, leases, or manages for third parties approximately 40 facilities mainly in the Southeast. Its portfolio consists of over 30 skilled nursing facilities, approximately two assisted living facilities and an independent living facility. The Company’s facilities provide a range of healthcare and related services to patients and residents, including skilled nursing and assisted living services, social services, various therapy services, and other rehabilitative and healthcare services for both long-term and short-stay patients and residents.
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