Acadia Healthcare (NASDAQ: ACHC) and AAC (NYSE:AAC) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Valuation & Earnings
This table compares Acadia Healthcare and AAC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Acadia Healthcare||$2.84 billion||1.21||$199.83 million||$2.30||16.91|
|AAC||$317.64 million||0.84||-$20.57 million||$0.60||18.63|
This is a breakdown of recent ratings and target prices for Acadia Healthcare and AAC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Acadia Healthcare presently has a consensus price target of $44.50, suggesting a potential upside of 14.40%. AAC has a consensus price target of $10.00, suggesting a potential downside of 10.55%. Given Acadia Healthcare’s higher probable upside, equities analysts clearly believe Acadia Healthcare is more favorable than AAC.
Risk and Volatility
Acadia Healthcare has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, AAC has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Institutional and Insider Ownership
64.3% of AAC shares are owned by institutional investors. 2.5% of Acadia Healthcare shares are owned by company insiders. Comparatively, 34.0% of AAC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Acadia Healthcare and AAC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Acadia Healthcare Company Profile
Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.
AAC Company Profile
AAC Holdings, Inc. provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United States. Its therapy services include motivational interviewing, cognitive behavioral therapy, rational emotive behavior therapy, dialectical behavioral therapy, solution-focused therapy, eye movement desensitization and reprocessing, and systematic family intervention. As of December 31, 2017, the company operated 9 residential substance abuse treatment facilities, 19 standalone outpatient centers, and 5 sober living facilities with a total of 1,348 combined residential and sober living beds. It also offers Internet marketing services to families and individuals struggling with addiction and seeking treatment options through online directories of treatment providers, treatment provider reviews, forums, and professional communities; and online marketing solutions to other treatment providers, such as facility profiles, audience targeting, lead generation, and tools for digital reputation management. In addition, the company performs drug testing and diagnostic laboratory services; and provides physician services to its clients. AAC Holdings, Inc. was founded in 2014 and is headquartered in Brentwood, Tennessee.
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