Critical Contrast: The Ensign Group (ENSG) and The Competition

The Ensign Group (NASDAQ: ENSG) is one of 15 publicly-traded companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it weigh in compared to its peers? We will compare The Ensign Group to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares The Ensign Group and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The Ensign Group $1.65 billion $49.99 million 25.17
The Ensign Group Competitors $1.06 billion -$22.56 million 760.57

The Ensign Group has higher revenue and earnings than its peers. The Ensign Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

The Ensign Group has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, The Ensign Group’s peers have a beta of 1.47, indicating that their average stock price is 47% more volatile than the S&P 500.

Dividends

The Ensign Group pays an annual dividend of $0.17 per share and has a dividend yield of 0.8%. The Ensign Group pays out 18.9% of its earnings in the form of a dividend. As a group, “Hospitals, Clinics & Primary Care Services” companies pay a dividend yield of 1.0% and pay out 37.9% of their earnings in the form of a dividend.

Profitability

This table compares The Ensign Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Ensign Group 2.65% 13.15% 6.04%
The Ensign Group Competitors 3.52% 3.52% 4.31%

Institutional and Insider Ownership

84.9% of The Ensign Group shares are owned by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 6.2% of The Ensign Group shares are owned by insiders. Comparatively, 10.8% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for The Ensign Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Ensign Group 2 0 3 0 2.20
The Ensign Group Competitors 58 326 509 9 2.52

The Ensign Group currently has a consensus target price of $24.50, indicating a potential upside of 8.17%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 20.88%. Given The Ensign Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe The Ensign Group has less favorable growth aspects than its peers.

Summary

The Ensign Group peers beat The Ensign Group on 8 of the 15 factors compared.

About The Ensign Group

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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