Analyzing Sienna Senior Living (OTCMKTS:LWSCF) and Extendicare (OTCMKTS:EXETF)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Extendicare and Sienna Senior Living, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extendicare	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 30.03%. Given Sienna Senior Living’s stronger consensus rating and higher probable upside, analysts plainly believe Sienna Senior Living is more favorable than Extendicare.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extendicare	N/A	N/A	N/A	($0.26)	-26.57
Sienna Senior Living	N/A	N/A	N/A	($0.64)	-18.68

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

Institutional and Insider Ownership

9.4% of Extendicare 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extendicare	N/A	N/A	N/A
Sienna Senior Living	N/A	N/A	N/A

Dividends

Extendicare pays an annual dividend of $0.48 per share and has a dividend yield of 7.0%. Sienna Senior Living pays an annual dividend of $0.90 per share and has a dividend yield of 7.6%. Extendicare pays out -185.0% 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.

Summary

Sienna Senior Living beats Extendicare on 6 of the 8 factors compared between the two stocks.

About Extendicare

Extendicare Inc., through its subsidiaries, provides care and services for seniors in Canada. The company offers long term care (LTC) services; and home health care services, such as nursing care, occupational, physical and speech therapy, and assistance with daily activities, as well as management, consulting, and other services to third parties. It operates through the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. The company was incorporated in 1968 and is based in Markham, Canada.

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.