Critical Review: Sonida Senior Living (SNDA) and Its Rivals

Sonida Senior Living (NYSE:SNDA) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it compare to its peers? We will compare Sonida Senior Living to similar businesses based on the strength of its dividends, institutional ownership, valuation, analyst recommendations, profitability, risk and earnings.

Institutional & Insider Ownership

87.5% of Sonida Senior Living shares are held by institutional investors. Comparatively, 56.8% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 39.3% of Sonida Senior Living shares are held by company insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Sonida Senior Living has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Sonida Senior Living’s peers have a beta of 0.97, suggesting that their average stock price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sonida Senior Living and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonida Senior Living	$381.14 million	-$70.78 million	-5.51
Sonida Senior Living Competitors	$21.30 billion	$288.54 million	7.18

Sonida Senior Living’s peers have higher revenue and earnings than Sonida Senior Living. Sonida Senior Living is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sonida Senior Living and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonida Senior Living	2	1	6	0	2.44
Sonida Senior Living Competitors	1843	7701	13249	815	2.55

Sonida Senior Living currently has a consensus price target of $49.50, suggesting a potential upside of 45.24%. As a group, “Healthcare Providers & Services” companies have a potential upside of 15.54%. Given Sonida Senior Living’s higher probable upside, equities analysts plainly believe Sonida Senior Living is more favorable than its peers.

Profitability

This table compares Sonida Senior Living and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonida Senior Living	-23.27%	-25.53%	-6.67%
Sonida Senior Living Competitors	-7.78%	-141.29%	-1.53%

Summary

Sonida Senior Living peers beat Sonida Senior Living on 8 of the 13 factors compared.

About Sonida Senior Living

Sonida Senior Living, Inc. develops, owns, operates, and manages senior housing communities in the United States. The company provides independent living services, which include daily meals, transportation, social and recreational activities, laundry, housekeeping, and 24-hour staffing; and access to health screenings, periodic special services, and dietary and similar programs, as well as exercise and fitness classes. It also offers assisted living services consist of personal care services, such as assistance with activities of daily living, including ambulation, bathing, dressing, eating, grooming, personal hygiene, and monitoring or assistance with medications; support services, such as meals, assistance with social and recreational activities, laundry, general housekeeping, maintenance, and transportation services; and supplemental services, which include extra transportation, personal maintenance, and extra laundry services, as well as special care services for residents with various forms of dementia. In addition, the company provides memory care services; and home care services through third-party providers. As of December 31, 2021, it operated 75 senior housing communities in 18 states with an aggregate capacity of approximately 9,500 residents, including 60 senior housing communities. The company was formerly known as Capital Senior Living Corporation and changed its name to Sonida Senior Living, Inc. in November 2021. Sonida Senior Living, Inc. was founded in 1990 and is based in Addison, Texas.