The Pennant Group, Inc. (PNTG) vs U.S. Physical Therapy, Inc. (USPH)

The Pennant Group, Inc. and U.S. Physical Therapy, Inc. are both Medical Care Facilities companies. The Pennant Group, Inc. is the larger, with a market value of $1.4B against $1.3B — 1.1× the size. The Pennant Group, Inc. trades at the lower P/E: 43.4× against 499×. The Pennant Group, Inc. grew revenue faster over the last twelve months: 37.9% against 11.3%. The Pennant Group, Inc. has the higher net margin (2.93% vs 2.54%) and the lower return on invested capital (6.63% vs 7.48%). Across the 22 metrics below, The Pennant Group, Inc. leads on 11 and U.S. Physical Therapy, Inc. on 11.

Valuation

Metric PNTG USPH Medical Care Facilities median
P/E 43.37 499.06 19.16
P/S 1.29 1.57 0.90
P/B 3.51 2.85 2.91
Price to free cash flow 40.95 19.95 12.62
EV/EBITDA 21.83 14.79 10.06
EV/Sales 1.45 1.81 1.35
Earnings yield 2.31% 0.20% 2.30%
Free cash flow yield 2.44% 5.01% 4.14%

Profitability

Metric PNTG USPH Medical Care Facilities median
Gross margin 13.83% 18.68% 30.78%
Operating margin 5.65% 9.42% 5.74%
Net margin 2.93% 2.54% 2.32%
Free cash flow margin 3.15% 7.89% 5.46%
Return on equity 8.76% 4.34% 8.76%
Return on assets 3.61% 1.70% 2.18%
Return on invested capital 6.63% 7.48% 5.40%

Growth

Metric PNTG USPH Medical Care Facilities median
Revenue growth (TTM) 37.90% 11.32% 7.12%
EPS growth (last fiscal year) 20.00% (22.83%) —
Revenue growth, 5-year CAGR 19.37% 13.05% 9.58%
Net income growth, 5-year CAGR 13.44% 2.38% 0.00%

Health

Metric PNTG USPH Medical Care Facilities median
Debt to equity 0.49 0.48 0.30
Current ratio 1.20 1.27 1.22
Net debt to EBITDA 2.56 1.07 1.32

Dividend

Metric PNTG USPH Medical Care Facilities median
Dividend yield — 1.83% 0.85%
Payout ratio 0.00 0.88 0.00

Size

Metric PNTG USPH Medical Care Facilities median
Market cap 1.38b 1.25b 1.34b

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