Healthcare Services Group, Inc. (HCSG) vs The Pennant Group, Inc. (PNTG)

Healthcare Services Group, Inc. and The Pennant Group, Inc. are both Medical Care Facilities companies. Healthcare Services Group, Inc. is the larger, with a market value of $1.7B against $1.4B — 1.2× the size. Healthcare Services Group, Inc. trades at the lower P/E: 16.6× against 37.3×. The Pennant Group, Inc. grew revenue faster over the last twelve months: 38.7% against 3.96%. Healthcare Services Group, Inc. has the higher net margin (5.58% vs 3.05%) and the higher return on invested capital (21.8% vs 7.14%). Across the 22 metrics below, Healthcare Services Group, Inc. leads on 19 and The Pennant Group, Inc. on 3.

Valuation

Metric HCSG PNTG Medical Care Facilities median
P/E 16.64 37.27 17.41
P/S 0.91 1.15 0.98
P/B 3.22 3.23 3.12
Price to free cash flow 15.99 39.50 16.05
EV/EBITDA 11.86 18.88 11.86
EV/Sales 0.81 1.31 1.37
Earnings yield 6.01% 2.68% 3.53%
Free cash flow yield 6.25% 2.53% 5.41%

Profitability

Metric HCSG PNTG Medical Care Facilities median
Gross margin 16.12% 13.71% 30.78%
Operating margin 6.06% 5.83% 5.97%
Net margin 5.58% 3.05% 3.05%
Free cash flow margin 5.68% 2.92% 6.97%
Return on equity 20.41% 9.41% 5.03%
Return on assets 12.68% 3.99% 2.78%
Return on invested capital 21.75% 7.14% 5.47%

Growth

Metric HCSG PNTG Medical Care Facilities median
Revenue growth (TTM) 3.96% 38.67% 6.38%
EPS growth (last fiscal year) 52.83% 20.00% 21.70%
Revenue growth, 5-year CAGR 0.86% 19.37% 9.94%
Net income growth, 5-year CAGR (9.76%) 13.44% 0.00%

Health

Metric HCSG PNTG Medical Care Facilities median
Debt to equity 0.00 0.47 0.37
Current ratio 2.82 1.18 1.37
Net debt to EBITDA (3.11) 2.56 1.32

Dividend

Metric HCSG PNTG Medical Care Facilities median
Dividend yield — — 0.57%
Payout ratio — — 0.12

Size

Metric HCSG PNTG Medical Care Facilities median
Market cap 1.69b 1.40b 1.62b

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