PACS Group, Inc. (PACS) vs Universal Health Services, Inc. (UHS)

PACS Group, Inc. and Universal Health Services, Inc. are both Medical Care Facilities companies. Universal Health Services, Inc. is the larger, with a market value of $10.5B against $6.6B — 1.6× the size. Universal Health Services, Inc. trades at the lower P/E: 7.2× against 24.3×. PACS Group, Inc. grew revenue faster over the last twelve months: 15.2% against 10.1%. Universal Health Services, Inc. has the higher net margin (8.42% vs 4.85%) and the lower return on invested capital (10.5% vs 21.4%). Across the 20 metrics below, Universal Health Services, Inc. leads on 13 and PACS Group, Inc. on 7.

Valuation

Metric PACS UHS Medical Care Facilities median
P/E 24.29 7.20 19.16
P/S 1.18 0.59 0.90
P/B 5.85 1.41 2.91
Price to free cash flow 14.30 12.62 12.62
EV/EBITDA 13.73 5.70 10.06
EV/Sales 1.19 0.85 1.35
Earnings yield 4.12% 13.88% 2.30%
Free cash flow yield 6.99% 7.92% 4.14%

Profitability

Metric PACS UHS Medical Care Facilities median
Gross margin 16.59% 90.69% 30.78%
Operating margin 7.39% 11.36% 5.74%
Net margin 4.85% 8.42% 2.32%
Free cash flow margin 8.22% 4.67% 5.46%
Return on equity 27.92% 20.81% 8.76%
Return on assets 4.82% 9.87% 2.18%
Return on invested capital 21.42% 10.46% 5.40%

Growth

Metric PACS UHS Medical Care Facilities median
Revenue growth (TTM) 15.15% 10.05% 7.12%
EPS growth (last fiscal year) 221.05% 37.34% —
Revenue growth, 5-year CAGR — 8.48% 9.58%
Net income growth, 5-year CAGR — 9.61% 0.00%

Health

Metric PACS UHS Medical Care Facilities median
Debt to equity 0.22 0.64 0.30
Current ratio 0.91 1.12 1.22
Net debt to EBITDA 0.41 1.77 1.32

Dividend

Metric PACS UHS Medical Care Facilities median
Dividend yield — 0.49% 0.85%
Payout ratio — 0.08 0.00

Size

Metric PACS UHS Medical Care Facilities median
Market cap 6.56b 10.53b 1.34b

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