Financial Comparison: Danaher (NYSE:DHR) & Selectis Health (OTCMKTS:GBCS)

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

Dividends

Selectis Health pays an annual dividend of $0.04 per share and has a dividend yield of 1.2%. Danaher pays an annual dividend of $1.28 per share and has a dividend yield of 0.6%. Selectis Health pays out -14.8% of its earnings in the form of a dividend. Danaher pays out 25.4% 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. Danaher has raised its dividend for 2 consecutive years. Selectis Health is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

79.1% of Danaher shares are owned by institutional investors. 15.2% of Selectis Health shares are owned by company insiders. Comparatively, 11.2% of Danaher shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Selectis Health has a beta of -0.99, indicating that its share price is 199% less volatile than the S&P 500. Comparatively, Danaher has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Selectis Health and Danaher’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%
Danaher	14.71%	10.81%	6.90%

Valuation & Earnings

This table compares Selectis Health and Danaher”s 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	0.25	-$2.42 million	($0.27)	-12.04
Danaher	$24.57 billion	6.11	$3.61 billion	$5.04	42.14

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Selectis Health and Danaher, as provided by MarketBeat.com.

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

Danaher has a consensus price target of $253.86, suggesting a potential upside of 19.54%. Given Danaher’s stronger consensus rating and higher possible upside, analysts plainly believe Danaher is more favorable than Selectis Health.

Summary

Danaher beats Selectis Health on 14 of the 17 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 Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.