Sienna Senior Living (OTCMKTS:LWSCF) vs. Community Health Systems (NYSE:CYH) Critical Review

Sienna Senior Living (OTCMKTS:LWSCF) and Community Health Systems (NYSE:CYH) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Sienna Senior Living and Community Health Systems’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sienna Senior Living	N/A	N/A	N/A	($0.64)	-17.49
Community Health Systems	$12.55 billion	0.06	-$133.00 million	($0.95)	-5.24

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

Insider and Institutional Ownership

11.9% of Sienna Senior Living shares are held by institutional investors. Comparatively, 85.0% of Community Health Systems shares are held by institutional investors. 9.9% of Community Health Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Sienna Senior Living and Community Health Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sienna Senior Living	N/A	N/A	N/A
Community Health Systems	-0.79%	N/A	-0.94%

Analyst Ratings

This is a summary of current ratings and recommmendations for Sienna Senior Living and Community Health Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sienna Senior Living	0	0	1	0	3.00
Community Health Systems	0	4	2	0	2.33

Sienna Senior Living presently has a consensus price target of $15.50, indicating a potential upside of 38.93%. Community Health Systems has a consensus price target of $4.73, indicating a potential downside of 5.12%. Given Sienna Senior Living’s stronger consensus rating and higher possible upside, analysts clearly believe Sienna Senior Living is more favorable than Community Health Systems.

About Sienna Senior Living

Sienna Senior Living Inc. provides senior living and long-term care (LTC) services in Canada. The company operates through Retirement and LTC segments. It offers independent supportive and assisted living, memory care, and long-term care services; and management services to senior living residences. The company was formerly known as Leisureworld Senior Care Corporation and changed its name to Sienna Senior Living Inc. in May 2015. Sienna Senior Living Inc. was founded in 1972 and is headquartered in Markham, Canada.

About Community Health Systems

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. The company was incorporated in 1996 and is headquartered in Franklin, Tennessee.