PACS Group (NYSE:PACS – Get Free Report) and InnovAge (NASDAQ:INNV – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Valuation & Earnings
This table compares PACS Group and InnovAge”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PACS Group | $5.55 billion | 1.17 | $191.54 million | $1.72 | 23.94 |
| InnovAge | $989.71 million | 1.24 | -$2.54 million | ($0.02) | -450.00 |
Profitability
This table compares PACS Group and InnovAge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PACS Group | 4.85% | 29.55% | 5.23% |
| InnovAge | -0.26% | -1.03% | -0.47% |
Risk and Volatility
PACS Group has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for PACS Group and InnovAge, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PACS Group | 0 | 2 | 5 | 0 | 2.71 |
| InnovAge | 2 | 1 | 1 | 0 | 1.75 |
PACS Group presently has a consensus price target of $58.80, indicating a potential upside of 42.78%. InnovAge has a consensus price target of $10.50, indicating a potential upside of 16.67%. Given PACS Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe PACS Group is more favorable than InnovAge.
Insider & Institutional Ownership
12.3% of InnovAge shares are held by institutional investors. 70.1% of PACS Group shares are held by insiders. Comparatively, 1.0% of InnovAge shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
PACS Group beats InnovAge on 11 of the 14 factors compared between the two stocks.
About PACS Group
PACS Group, Inc., through its subsidiaries, operates skilled nursing facilities and assisted living facilities in the United States. The company also provides senior care and independent facilities. It engages in the acquisition, ownership, and leasing of health care-related properties. The company was founded in 2013 and is based in Farmington, Utah.
About InnovAge
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
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