PACS Group, Inc. (PACS) vs Tenet Healthcare Corporation (THC)

PACS Group, Inc. and Tenet Healthcare Corporation are both Medical Care Facilities companies. Tenet Healthcare Corporation is the larger, with a market value of $22.2B against $7.6B — 2.9× the size. Tenet Healthcare Corporation trades at the lower P/E: 10.3× against 27.6×. PACS Group, Inc. grew revenue faster over the last twelve months: 15.2% against 9.40%. Tenet Healthcare Corporation has the higher net margin (9.90% vs 4.85%) and the lower return on invested capital (16.1% vs 21.4%). Across the 20 metrics below, Tenet Healthcare Corporation leads on 14 and PACS Group, Inc. on 6.

Valuation

Metric PACS THC Medical Care Facilities median
P/E 27.59 10.28 20.56
P/S 1.34 0.99 0.85
P/B 6.65 3.42 2.84
Price to free cash flow 16.25 7.42 13.73
EV/EBITDA 15.58 6.14 10.21
EV/Sales 1.35 1.48 1.32
Earnings yield 3.62% 9.72% 2.25%
Free cash flow yield 6.16% 13.47% 4.16%

Profitability

Metric PACS THC Medical Care Facilities median
Gross margin 16.59% 43.82% 30.78%
Operating margin 7.39% 20.05% 5.74%
Net margin 4.85% 9.90% 2.32%
Free cash flow margin 8.22% 13.35% 5.46%
Return on equity 27.92% 37.25% 8.76%
Return on assets 4.82% 7.55% 2.18%
Return on invested capital 21.42% 16.09% 5.01%

Growth

Metric PACS THC Medical Care Facilities median
Revenue growth (TTM) 15.15% 9.40% 7.12%
EPS growth (last fiscal year) 221.05% (52.63%) 17.46%
Revenue growth, 5-year CAGR — 3.85% 9.58%
Net income growth, 5-year CAGR — 28.67% 0.00%

Health

Metric PACS THC Medical Care Facilities median
Debt to equity 0.22 2.02 0.37
Current ratio 0.91 1.41 1.20
Net debt to EBITDA 0.41 2.34 1.07

Dividend

Metric PACS THC Medical Care Facilities median
Dividend yield — — 0.63%
Payout ratio — — 0.13

Size

Metric PACS THC Medical Care Facilities median
Market cap 7.56b 22.15b 1.47b

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