Healthcare Services Group, Inc. (HCSG) vs U.S. Physical Therapy, Inc. (USPH)

Healthcare Services Group, Inc. and U.S. Physical Therapy, Inc. are both Medical Care Facilities companies. Healthcare Services Group, Inc. is the larger, with a market value of $1.7B against $1.5B — 1.2× the size. U.S. Physical Therapy, Inc. has negative trailing earnings, so its P/E is not meaningful; Healthcare Services Group, Inc. trades at 16.6×. U.S. Physical Therapy, Inc. grew revenue faster over the last twelve months: 10.4% against 3.96%. Healthcare Services Group, Inc. has the higher net margin (5.58% vs 0.00%) and the higher return on invested capital (21.8% vs 0.00%). Across the 21 metrics below, Healthcare Services Group, Inc. leads on 16 and U.S. Physical Therapy, Inc. on 5.

Valuation

Metric HCSG USPH Medical Care Facilities median
P/E 16.64 n/m 17.41
P/S 0.91 1.73 0.98
P/B 3.22 3.37 3.12
Price to free cash flow 15.99 20.95 16.05
EV/EBITDA 11.86 16.62 11.86
EV/Sales 0.81 1.97 1.37
Earnings yield 6.01% (1.39%) 3.53%
Free cash flow yield 6.25% 4.77% 5.41%

Profitability

Metric HCSG USPH Medical Care Facilities median
Gross margin 16.12% 18.85% 30.78%
Operating margin 6.06% 0.00% 5.97%
Net margin 5.58% 0.00% 3.05%
Free cash flow margin 5.68% 8.25% 6.97%
Return on equity 20.41% 0.00% 5.03%
Return on assets 12.68% 0.00% 2.78%
Return on invested capital 21.75% 0.00% 5.47%

Growth

Metric HCSG USPH Medical Care Facilities median
Revenue growth (TTM) 3.96% 10.40% 6.38%
EPS growth (last fiscal year) 52.83% (22.83%) 21.70%
Revenue growth, 5-year CAGR 0.86% 13.05% 9.94%
Net income growth, 5-year CAGR (9.76%) 2.38% 0.00%

Health

Metric HCSG USPH Medical Care Facilities median
Debt to equity 0.00 0.56 0.37
Current ratio 2.82 1.42 1.37
Net debt to EBITDA (3.11) 1.07 1.32

Dividend

Metric HCSG USPH Medical Care Facilities median
Dividend yield — 1.89% 0.57%
Payout ratio — 10.76 0.12

Size

Metric HCSG USPH Medical Care Facilities median
Market cap 1.69b 1.45b 1.62b

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