Analyzing Life Healthcare Group (OTCMKTS:LTGHY) & Sienna Senior Living (OTCMKTS:LWSCF)

Life Healthcare Group (OTCMKTS:LTGHY) and Sienna Senior Living (OTCMKTS:LWSCF) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and price targets for Life Healthcare Group and Sienna Senior Living, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Healthcare Group	0	0	0	0	0.00
Sienna Senior Living	0	0	1	0	3.00

Sienna Senior Living has a consensus price target of $15.50, suggesting a potential upside of 28.63%. Given Sienna Senior Living’s stronger consensus rating and higher probable upside, analysts plainly believe Sienna Senior Living is more favorable than Life Healthcare Group.

Dividends

Life Healthcare Group pays an annual dividend of $1.89 per share and has a dividend yield of 51.8%. Sienna Senior Living pays an annual dividend of $0.90 per share and has a dividend yield of 7.5%. Life Healthcare Group pays out 17.7% of its earnings in the form of a dividend. Sienna Senior Living pays out -141.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Life Healthcare Group and Sienna Senior Living”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life Healthcare Group	N/A	N/A	N/A	$10.67	0.34
Sienna Senior Living	N/A	N/A	N/A	($0.64)	-18.88

Sienna Senior Living is trading at a lower price-to-earnings ratio than Life Healthcare Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Life Healthcare Group and Sienna Senior Living’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life Healthcare Group	N/A	N/A	N/A
Sienna Senior Living	N/A	N/A	N/A

Institutional and Insider Ownership

11.9% of Sienna Senior Living shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Sienna Senior Living beats Life Healthcare Group on 5 of the 8 factors compared between the two stocks.

About Life Healthcare Group

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals in South Africa, Canada, the United Kingdom, rest of Europe, and Internationally. It operates through two segments, Hospitals and Complementary Services; and Healthcare Services. The company provides range of acute hospitals and complementary services; Life Esidimeni services, such as chronic mental healthcare, frail care rehabilitation, step-down care, correctional services, and primary healthcare and substance abuse recovery programs; and life employee health solutions, including on-site occupational and primary healthcare services and employee wellness programs. It also offers services in the areas of diagnostics, mental health, acute rehabilitation, renal dialysis, oncology, cardiology, neurology, orthopedic, pediatric, dermatology, ophthalmology, gynecology, and obstetric. In addition, the company provides diagnostic imaging services; magnetic resonance imaging and computerized tomography scanners; develops, manufactures, and distributes radiopharmaceuticals for use in positron emission tomography-computerized tomography (PET-CT) diagnostics. The company was formerly known as Afrox Healthcare Limited and changed its name to Life Healthcare Group Holdings Limited in January 2005. Life Healthcare Group Holdings Limited was founded in 1983 and is headquartered in Johannesburg, South Africa.

About Sienna Senior Living

Sienna Senior Living Inc. provides senior living and long-term care (LTC) services in Canada. The company operates through Retirement and LTC segments. It offers independent supportive and assisted living, memory care, and long-term care services; and management services to senior living residences. The company was formerly known as Leisureworld Senior Care Corporation and changed its name to Sienna Senior Living Inc. in May 2015. Sienna Senior Living Inc. was founded in 1972 and is headquartered in Markham, Canada.