Healthcare Services Group, Inc. (HCSG) vs Starling Oncology, Inc. (STLN)

Healthcare Services Group, Inc. and Starling Oncology, Inc. are both Medical Care Facilities companies. Healthcare Services Group, Inc. is the larger, with a market value of $1.5B against $690.9M — 2.1× the size. Starling Oncology, Inc. has negative trailing earnings, so its P/E is not meaningful; Healthcare Services Group, Inc. trades at 12.2×. Starling Oncology, Inc. grew revenue faster over the last twelve months: 38.4% against 5.22%. Healthcare Services Group, Inc. has the higher net margin (6.59% vs −6.18%) and the higher return on invested capital (25.1% vs −117.7%). Across the 18 metrics below, Healthcare Services Group, Inc. leads on 13 and Starling Oncology, Inc. on 5.

Valuation

Metric HCSG STLN Medical Care Facilities median
P/E 12.21 n/m 20.56
P/S 0.78 1.13 0.85
P/B 2.80 n/m 2.84
Price to free cash flow 9.77 n/m 13.73
EV/EBITDA 8.92 n/m 10.21
EV/Sales 0.68 1.19 1.32
Earnings yield 8.19% (4.67%) 2.25%
Free cash flow yield 10.24% (0.50%) 4.16%

Profitability

Metric HCSG STLN Medical Care Facilities median
Gross margin 17.11% 15.69% 30.78%
Operating margin 6.85% (4.44%) 5.74%
Net margin 6.59% (6.18%) 2.32%
Free cash flow margin 7.98% (0.56%) 5.46%
Return on equity 24.69% 214.12% 8.76%
Return on assets 15.15% (21.47%) 2.18%
Return on invested capital 25.12% (117.66%) 5.01%

Growth

Metric HCSG STLN Medical Care Facilities median
Revenue growth (TTM) 5.22% 38.38% 7.12%
EPS growth (last fiscal year) 52.83% 23.94% 17.46%
Revenue growth, 5-year CAGR 0.86% 21.80% 9.58%
Net income growth, 5-year CAGR (9.76%) 0.00% 0.00%

Health

Metric HCSG STLN Medical Care Facilities median
Debt to equity 0.00 (3.21) 0.37
Current ratio 3.02 1.36 1.20
Net debt to EBITDA (3.11) (2.11) 1.07

Dividend

Metric HCSG STLN Medical Care Facilities median
Dividend yield — — 0.63%
Payout ratio — — 0.13

Size

Metric HCSG STLN Medical Care Facilities median
Market cap 1.47b 690.88m 1.47b

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