Financial Review: Selectis Health (OTCMKTS:GBCS) and Service Properties Trust (NASDAQ:SVC)

Selectis Health (OTCMKTS:GBCS) and Service Properties Trust (NASDAQ:SVC) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Selectis Health and Service Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selectis Health	0	0	0	0	0.00
Service Properties Trust	1	0	1	0	2.00

Service Properties Trust has a consensus price target of $5.38, suggesting a potential upside of 120.29%. Given Service Properties Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Service Properties Trust is more favorable than Selectis Health.

Institutional and Insider Ownership

77.6% of Service Properties Trust shares are owned by institutional investors. 15.2% of Selectis Health shares are owned by company insiders. Comparatively, 1.4% of Service Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Selectis Health and Service Properties Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selectis Health	$36.78 million	N/A	-$3.97 million	($1.79)	-1.04
Service Properties Trust	$1.88 billion	0.22	-$32.78 million	($1.47)	-1.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Selectis Health	-14.37%	N/A	-14.59%
Service Properties Trust	-12.87%	-22.67%	-3.37%

Volatility and Risk

Selectis Health has a beta of -0.38, suggesting that its share price is 138% less volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500.

Summary

Service Properties Trust beats Selectis Health on 9 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 Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.