DaVita Inc. (DVA) vs PACS Group, Inc. (PACS)

DaVita Inc. and PACS Group, Inc. are both Medical Care Facilities companies. DaVita Inc. is the larger, with a market value of $11.2B against $6.6B — 1.7× the size. DaVita Inc. trades at the lower P/E: 14.3× against 24.3×. PACS Group, Inc. grew revenue faster over the last twelve months: 15.2% against 6.45%. DaVita Inc. has the higher net margin (6.05% vs 4.85%) and the lower return on invested capital (13.9% vs 21.4%). Across the 19 metrics below, DaVita Inc. leads on 12 and PACS Group, Inc. on 7.

Valuation

Metric DVA PACS Medical Care Facilities median
P/E 14.30 24.29 19.16
P/S 0.83 1.18 0.90
P/B n/m 5.85 2.91
Price to free cash flow 6.43 14.30 12.62
EV/EBITDA 7.61 13.73 10.06
EV/Sales 1.54 1.19 1.35
Earnings yield 6.99% 4.12% 2.30%
Free cash flow yield 15.56% 6.99% 4.14%

Profitability

Metric DVA PACS Medical Care Facilities median
Gross margin 32.36% 16.59% 30.78%
Operating margin 15.19% 7.39% 5.74%
Net margin 6.05% 4.85% 2.32%
Free cash flow margin 11.61% 8.22% 5.46%
Return on equity (287.31%) 27.92% 8.76%
Return on assets 4.81% 4.82% 2.18%
Return on invested capital 13.90% 21.42% 5.40%

Growth

Metric DVA PACS Medical Care Facilities median
Revenue growth (TTM) 6.45% 15.15% 7.12%
EPS growth (last fiscal year) (8.29%) 221.05% —
Revenue growth, 5-year CAGR 3.39% — 9.58%
Net income growth, 5-year CAGR (0.70%) — 0.00%

Health

Metric DVA PACS Medical Care Facilities median
Debt to equity (22.44) 0.22 0.30
Current ratio 1.47 0.91 1.22
Net debt to EBITDA 3.51 0.41 1.32

Dividend

Metric DVA PACS Medical Care Facilities median
Dividend yield — — 0.85%
Payout ratio 0.00 — 0.00

Size

Metric DVA PACS Medical Care Facilities median
Market cap 11.20b 6.56b 1.34b

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