Critical Comparison: Sienna Senior Living (OTCMKTS:LWSCF) & Ramsay Health Care (OTCMKTS:RMSYF)

Sienna Senior Living (OTCMKTS:LWSCF) and Ramsay Health Care (OTCMKTS:RMSYF) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Sienna Senior Living and Ramsay Health Care”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sienna Senior Living	N/A	N/A	N/A	($0.64)	-18.62
Ramsay Health Care	N/A	N/A	N/A	$1.43	16.78

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Sienna Senior Living and Ramsay Health Care, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sienna Senior Living	0	0	1	0	3.00
Ramsay Health Care	0	0	0	0	0.00

Sienna Senior Living currently has a consensus target price of $15.50, indicating a potential upside of 30.47%. Given Sienna Senior Living’s stronger consensus rating and higher probable upside, research analysts plainly believe Sienna Senior Living is more favorable than Ramsay Health Care.

Profitability

This table compares Sienna Senior Living and Ramsay Health Care’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sienna Senior Living	N/A	N/A	N/A
Ramsay Health Care	N/A	N/A	N/A

Institutional and Insider Ownership

11.9% of Sienna Senior Living shares are held by institutional investors. Comparatively, 13.2% of Ramsay Health Care shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Sienna Senior Living pays an annual dividend of $0.90 per share and has a dividend yield of 7.6%. Ramsay Health Care pays an annual dividend of $0.76 per share and has a dividend yield of 3.1%. Sienna Senior Living pays out -141.0% of its earnings in the form of a dividend. Ramsay Health Care pays out 52.8% 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. Sienna Senior Living is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Sienna Senior Living beats Ramsay Health Care on 5 of the 8 factors compared between the two stocks.

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.

About Ramsay Health Care

Ramsay Health Care Limited owns and operates hospitals. The company offers health care services to public and private patients. It operates facilities in approximately 530 locations in the Asia Pacific, the United Kingdom, France, and Nordics. Ramsay Health Care Limited was founded in 1964 and is based in Sydney, Australia.