Sienna Senior Living (OTCMKTS:LWSCF) and Ramsay Health Care (OTCMKTS:RMSYF) Financial Contrast

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

Insider and Institutional Ownership

13.2% of Ramsay Health Care shares are held by institutional investors. Comparatively, 11.9% of Sienna Senior Living shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

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

Earnings & Valuation

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

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

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 Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ramsay Health Care	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 30.47%. Given Sienna Senior Living’s stronger consensus rating and higher possible upside, analysts plainly believe Sienna Senior Living is more favorable than Ramsay Health Care.

Dividends

Ramsay Health Care pays an annual dividend of $0.76 per share and has a dividend yield of 3.1%. Sienna Senior Living pays an annual dividend of $0.90 per share and has a dividend yield of 7.6%. Ramsay Health Care pays out 52.8% 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. 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 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.

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.