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

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

Analyst Recommendations

This is a summary of recent ratings for Selectis Health and Service Properties Trust, as reported by MarketBeat.com.

	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, indicating a potential upside of 115.86%. Given Service Properties Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Service Properties Trust is more favorable than Selectis Health.

Risk & Volatility

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

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%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selectis Health	$36.78 million	0.17	-$3.97 million	($1.79)	-1.11
Service Properties Trust	$1.88 billion	0.22	-$32.78 million	($1.47)	-1.69

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.

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 insiders. Comparatively, 1.4% of Service Properties Trust shares are owned by 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.

Dividends

Selectis Health pays an annual dividend of $0.04 per share and has a dividend yield of 2.0%. Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. Selectis Health pays out -2.2% of its earnings in the form of a dividend. Service Properties Trust pays out -2.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Service Properties Trust beats Selectis Health on 11 of the 16 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.