Healthcare Services Group, Inc. (HCSG) vs InnovAge Holding Corp. (INNV)

Healthcare Services Group, Inc. and InnovAge Holding Corp. are both Medical Care Facilities companies. Healthcare Services Group, Inc. is the larger, with a market value of $1.4B against $1.2B — 1.2× the size. InnovAge Holding Corp. has negative trailing earnings, so its P/E is not meaningful; Healthcare Services Group, Inc. trades at 12.2×. InnovAge Holding Corp. grew revenue faster over the last twelve months: 15.9% against 5.22%. Healthcare Services Group, Inc. has the higher net margin (6.59% vs −0.26%) and the higher return on invested capital (25.1% vs 1.06%). Across the 21 metrics below, Healthcare Services Group, Inc. leads on 15 and InnovAge Holding Corp. on 6.

Valuation

Metric HCSG INNV Medical Care Facilities median
P/E 12.17 n/m 19.16
P/S 0.78 1.23 0.90
P/B 2.79 5.12 2.91
Price to free cash flow 9.73 24.10 12.62
EV/EBITDA 8.88 46.32 10.06
EV/Sales 0.68 1.15 1.35
Earnings yield 8.22% (0.22%) 2.30%
Free cash flow yield 10.27% 4.15% 4.14%

Profitability

Metric HCSG INNV Medical Care Facilities median
Gross margin 17.11% 23.01% 30.78%
Operating margin 6.85% 0.26% 5.74%
Net margin 6.59% (0.26%) 2.32%
Free cash flow margin 7.98% 5.47% 5.46%
Return on equity 24.69% (1.06%) 8.76%
Return on assets 15.15% (0.47%) 2.18%
Return on invested capital 25.12% 1.06% 5.40%

Growth

Metric HCSG INNV Medical Care Facilities median
Revenue growth (TTM) 5.22% 15.93% 7.12%
EPS growth (last fiscal year) 52.83% 90.91% —
Revenue growth, 5-year CAGR 0.86% 9.19% 9.58%
Net income growth, 5-year CAGR (9.76%) 0.00% 0.00%

Health

Metric HCSG INNV Medical Care Facilities median
Debt to equity 0.00 0.24 0.30
Current ratio 3.02 1.05 1.22
Net debt to EBITDA (3.11) (3.47) 1.32

Dividend

Metric HCSG INNV Medical Care Facilities median
Dividend yield 2.12% — 0.85%
Payout ratio 0.82 0.00 0.00

Size

Metric HCSG INNV Medical Care Facilities median
Market cap 1.44b 1.21b 1.34b

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