Financial Review: Selectis Health (OTCMKTS:GBCS) versus CVS Health (NYSE:CVS)

Selectis Health (OTCMKTS:GBCS) and CVS Health (NYSE:CVS) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Selectis Health has a beta of -1.12, suggesting that its stock price is 212% less volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Profitability

This table compares Selectis Health and CVS Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Selectis Health	-1.87%	N/A	-2.34%
CVS Health	0.44%	11.31%	3.35%

Institutional & Insider Ownership

80.7% of CVS Health shares are held by institutional investors. 15.2% of Selectis Health shares are held by company insiders. Comparatively, 1.2% of CVS Health shares are held by company insiders. 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Selectis Health and CVS Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selectis Health	0	0	0	0	0.00
CVS Health	0	3	20	0	2.87

CVS Health has a consensus target price of $94.95, suggesting a potential upside of 19.76%. Given CVS Health’s stronger consensus rating and higher probable upside, analysts clearly believe CVS Health is more favorable than Selectis Health.

Valuation and Earnings

This table compares Selectis Health and CVS Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selectis Health	$39.49 million	0.34	-$2.42 million	($0.27)	-16.11
CVS Health	$402.07 billion	0.25	$1.77 billion	$1.38	57.45

CVS Health has higher revenue and earnings than Selectis Health. Selectis Health is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.

Summary

CVS Health beats Selectis Health on 12 of the 14 factors compared between the two stocks.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.

About CVS Health

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.