Analyzing Medical Facilities (OTCMKTS:MFCSF) & National HealthCare (NYSE:NHC)

Medical Facilities (OTCMKTS:MFCSF) and National HealthCare (NYSE:NHC) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Institutional and Insider Ownership

25.4% of Medical Facilities shares are owned by institutional investors. Comparatively, 56.4% of National HealthCare shares are owned by institutional investors. 13.8% of National HealthCare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Medical Facilities pays an annual dividend of $1.04 per share and has a dividend yield of 10.2%. National HealthCare pays an annual dividend of $2.44 per share and has a dividend yield of 1.9%. Medical Facilities pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National HealthCare pays out 46.4% of its earnings in the form of a dividend. National HealthCare has raised its dividend for 9 consecutive years.

Valuation and Earnings

This table compares Medical Facilities and National HealthCare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medical Facilities	N/A	N/A	N/A	$0.94	10.81
National HealthCare	$1.18 billion	1.66	$66.80 million	$5.26	24.17

National HealthCare has higher revenue and earnings than Medical Facilities. Medical Facilities is trading at a lower price-to-earnings ratio than National HealthCare, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Medical Facilities and National HealthCare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Facilities	0	0	0	0	N/A
National HealthCare	0	0	0	0	N/A

Profitability

This table compares Medical Facilities and National HealthCare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medical Facilities	N/A	N/A	N/A
National HealthCare	7.74%	6.39%	4.47%

Summary

National HealthCare beats Medical Facilities on 10 of the 11 factors compared between the two stocks.

About Medical Facilities

Medical Facilities Corporation, through its subsidiaries, owns and operates specialty hospitals and ambulatory surgery center in the United States. The company's specialty hospital offers non-emergency surgical, imaging, diagnostic, and pain management procedures, as well as other ancillary services, such as primary and urgent care; and ambulatory surgery centers offers scheduled outpatient surgical procedures. Medical Facilities Corporation was incorporated in 2004 and is headquartered in Toronto, Canada.

About National HealthCare

National HealthCare Corporation engages in the operation of services to skilled nursing facilities, assisted and independent living facilities, homecare and hospice agencies, and health hospitals. Its skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, such as physical, speech, respiratory, and occupational therapy for patients recovering from strokes, heart attacks, orthopedic conditions, neurological illnesses, or other illnesses, injuries, or disabilities. The company’s medical specialty units comprise memory care units and sub-cute nursing units that provide specialized care and programs for persons with Alzheimer’s or related disorders; and assisted living facilities offer personal care services and assistance with general activities of daily living, such as dressing, bathing, meal preparation, and medication management. Its independent living facilities offers specially designed residential units for the active and ambulatory elderly and provide various ancillary services for residents, including restaurants, activity rooms and social areas; and behavioral health services to both adults and geriatric patients with psychiatric, emotional, and addictive disorders. In addition, the company’s homecare agencies assist those who wish to stay at home or in assisted living residences but still require some degree of medical care or assistance with daily activities; hospice agencies that provides hospice and palliative care; and operates pharmacies, as well as managed care insurance solutions. Further, it offers management, accounting, and financial services; and leases its properties to third party operators. The company was founded in 1971 and is based in Murfreesboro, Tennessee.