Comparing Selectis Health (OTCMKTS:GBCS) and InnovAge (NASDAQ:INNV)

Selectis Health (OTCMKTS:GBCS) and InnovAge (NASDAQ:INNV) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Selectis Health and InnovAge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selectis Health	0	0	0	0	0.00
InnovAge	1	2	0	0	1.67

InnovAge has a consensus target price of $7.00, suggesting a potential downside of 15.87%. Given InnovAge’s stronger consensus rating and higher probable upside, analysts clearly believe InnovAge is more favorable than Selectis Health.

Institutional and Insider Ownership

12.3% of InnovAge shares are held by institutional investors. 15.2% of Selectis Health shares are held by company insiders. Comparatively, 1.0% of InnovAge shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Selectis Health and InnovAge”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selectis Health	$41.44 million	0.34	-$1.02 million	($0.34)	-13.46
InnovAge	$853.70 million	1.32	-$30.31 million	$0.05	166.40

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

Volatility & Risk

Selectis Health has a beta of -1.07, indicating that its share price is 207% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Selectis Health	-2.45%	N/A	-3.03%
InnovAge	0.71%	2.60%	1.23%

Summary

InnovAge beats Selectis Health on 11 of the 13 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 InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.