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 $1.4B against $1.3B — 1.2× the size. Healthcare Services Group, Inc. trades at the lower P/E: 12.2× against 499×. U.S. Physical Therapy, Inc. grew revenue faster over the last twelve months: 11.3% against 5.22%. Healthcare Services Group, Inc. has the higher net margin (6.59% vs 2.54%) and the higher return on invested capital (25.1% vs 7.48%). Both pay a dividend; Healthcare Services Group, Inc. yields more (2.12% vs 1.83%). Across the 23 metrics below, Healthcare Services Group, Inc. leads on 18 and U.S. Physical Therapy, Inc. on 5.

Valuation

Metric HCSG USPH Medical Care Facilities median
P/E 12.17 499.06 19.16
P/S 0.78 1.57 0.90
P/B 2.79 2.85 2.91
Price to free cash flow 9.73 19.95 12.62
EV/EBITDA 8.88 14.79 10.06
EV/Sales 0.68 1.81 1.35
Earnings yield 8.22% 0.20% 2.30%
Free cash flow yield 10.27% 5.01% 4.14%

Profitability

Metric HCSG USPH Medical Care Facilities median
Gross margin 17.11% 18.68% 30.78%
Operating margin 6.85% 9.42% 5.74%
Net margin 6.59% 2.54% 2.32%
Free cash flow margin 7.98% 7.89% 5.46%
Return on equity 24.69% 4.34% 8.76%
Return on assets 15.15% 1.70% 2.18%
Return on invested capital 25.12% 7.48% 5.40%

Growth

Metric HCSG USPH Medical Care Facilities median
Revenue growth (TTM) 5.22% 11.32% 7.12%
EPS growth (last fiscal year) 52.83% (22.83%) —
Revenue growth, 5-year CAGR 0.86% 13.05% 9.58%
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 0.48 0.30
Current ratio 3.02 1.27 1.22
Net debt to EBITDA (3.11) 1.07 1.32

Dividend

Metric HCSG USPH Medical Care Facilities median
Dividend yield 2.12% 1.83% 0.85%
Payout ratio 0.82 0.88 0.00

Size

Metric HCSG USPH Medical Care Facilities median
Market cap 1.44b 1.25b 1.34b

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