Contrasting Pacific Health Care Organization (OTCMKTS:PFHO) and GeneDx (NASDAQ:WGS)

GeneDx (NASDAQ:WGS) and Pacific Health Care Organization (OTCMKTS:PFHO) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

61.7% of GeneDx shares are owned by institutional investors. 29.6% of GeneDx shares are owned by company insiders. Comparatively, 61.6% of Pacific Health Care Organization shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

GeneDx has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Pacific Health Care Organization has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for GeneDx and Pacific Health Care Organization, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneDx	1	3	7	0	2.55
Pacific Health Care Organization	0	0	0	0	0.00

GeneDx presently has a consensus price target of $129.22, suggesting a potential downside of 2.68%. Given GeneDx’s stronger consensus rating and higher probable upside, equities analysts clearly believe GeneDx is more favorable than Pacific Health Care Organization.

Earnings and Valuation

This table compares GeneDx and Pacific Health Care Organization”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$305.45 million	12.57	-$52.29 million	$0.09	1,475.33
Pacific Health Care Organization	$6.07 million	2.74	$880,000.00	$0.11	11.82

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

Profitability

This table compares GeneDx and Pacific Health Care Organization’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeneDx	0.52%	20.22%	11.89%
Pacific Health Care Organization	21.71%	11.80%	11.21%

Summary

GeneDx beats Pacific Health Care Organization on 10 of the 14 factors compared between the two stocks.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.