Critical Contrast: Hanger (HNGR) vs. Acadia Healthcare (ACHC)

Acadia Healthcare (NASDAQ: ACHC) and Hanger (OTCMKTS:HNGR) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

This table compares Acadia Healthcare and Hanger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acadia Healthcare 7.34% 7.99% 3.17%
Hanger N/A N/A N/A

Valuation and Earnings

This table compares Acadia Healthcare and Hanger’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acadia Healthcare $2.84 billion 1.31 $199.83 million $2.30 18.34
Hanger $1.04 billion 0.66 -$104.67 million $0.33 57.58

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

Risk & Volatility

Acadia Healthcare has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Hanger has a beta of 4.16, meaning that its share price is 316% more volatile than the S&P 500.

Institutional & Insider Ownership

3.4% of Hanger shares are held by institutional investors. 2.5% of Acadia Healthcare shares are held by insiders. Comparatively, 2.4% of Hanger shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Acadia Healthcare and Hanger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadia Healthcare 0 4 11 0 2.73
Hanger 0 1 0 0 2.00

Acadia Healthcare presently has a consensus price target of $44.50, suggesting a potential upside of 5.50%. Hanger has a consensus price target of $17.00, suggesting a potential downside of 10.53%. Given Acadia Healthcare’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Acadia Healthcare is more favorable than Hanger.

Summary

Acadia Healthcare beats Hanger on 11 of the 13 factors compared between the two stocks.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc. develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral healthcare facilities to serve the behavioral health and recovery needs of communities. The company operates acute inpatient psychiatric facilities, which offer evaluation and crisis stabilization of patients with severe psychiatric diagnoses; specialty treatment facilities, including residential recovery facilities, eating disorder facilities, and comprehensive treatment centers that provide continuum care for adults with addictive disorders and co-occurring mental disorders; and residential treatment centers, which treat patients with behavioral disorders in a non-hospital setting, including outdoor programs. It also provides outpatient community-based services, such as community-based programs that are designed to offer therapeutic treatment to children and adolescents who have a clinically-defined emotional, psychiatric, or chemical dependency disorder. In addition, the company provides mental health services; rehabilitation services comprising relapse prevention and social integration services, as well as vocational opportunities; acute services for patients at risk to themselves or others, as well as crisis intervention and treatment of behavioral emergencies; and long-term and non-acute care services for adults suffering from mental illness, addiction, learning disability, or brain injury. Further, it provides education and children's services for children and young people with special educational needs; adult and elderly care services; and care first services for employees. As of December 31, 2017, the company operated a network of 582 behavioral healthcare facilities with approximately 17,800 beds in the United States, the United Kingdom, and Puerto Rico. Acadia Healthcare Company, Inc. was founded in 2005 and is headquartered in Franklin, Tennessee.

Hanger Company Profile

Hanger, Inc. provides orthotic and prosthetic (O&P) patient care services; and distributes O&P devices, manages O&P networks, and provides therapeutic solutions to patients and businesses in acute, post-acute, and clinic settings in the United States. It operates in two segments, Patient Care and Products & Services. The Patient Care segment owns and operates Hanger clinic, which specializes in the design, fabrication, and delivery of custom O&P devices through patient care clinics and satellite locations; and provides payor network contracting services to other O&P providers. The Products & Services segment procures and distributes O&P parts, componentry, and devices to independent O&P providers; and develops specialized rehabilitation technologies and provides evidence-based clinical programs for post-acute rehabilitation to patients at approximately 4,000 skilled nursing and post-acute providers. This segment also manufactures and sells therapeutic footwear for diabetic patients in the podiatric market. As of January 19, 2018, the company owned and operated approximately 800 patient care clinics in the United States. The company was formerly known as Hanger Orthopedic Group, Inc. and changed its name to Hanger, Inc. in June 2012. Hanger, Inc. was founded in 1861 and is headquartered in Austin, Texas.

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