National HealthCare (NYSE:NHC) and PACS Group (NYSE:PACS) Critical Contrast

National HealthCare (NYSE:NHC) and PACS Group (NYSE:PACS) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

56.4% of National HealthCare shares are held by institutional investors. 13.8% of National HealthCare shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for National HealthCare and PACS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National HealthCare	0	0	0	0	N/A
PACS Group	0	0	8	0	3.00

PACS Group has a consensus price target of $39.38, suggesting a potential downside of 1.83%. Given PACS Group’s higher probable upside, analysts clearly believe PACS Group is more favorable than National HealthCare.

Earnings and Valuation

This table compares National HealthCare and PACS Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National HealthCare	$1.18 billion	1.58	$66.80 million	$5.26	23.03
PACS Group	$3.56 billion	1.72	$112.87 million	N/A	N/A

PACS Group has higher revenue and earnings than National HealthCare.

Profitability

This table compares National HealthCare and PACS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National HealthCare	7.74%	6.39%	4.47%
PACS Group	N/A	N/A	N/A

About National HealthCare

National HealthCare Corporation engages in the operation of services to skilled nursing facilities, assisted and independent living facilities, homecare and hospice agencies, and health hospitals. Its skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, such as physical, speech, respiratory, and occupational therapy for patients recovering from strokes, heart attacks, orthopedic conditions, neurological illnesses, or other illnesses, injuries, or disabilities. The company’s medical specialty units comprise memory care units and sub-cute nursing units that provide specialized care and programs for persons with Alzheimer’s or related disorders; and assisted living facilities offer personal care services and assistance with general activities of daily living, such as dressing, bathing, meal preparation, and medication management. Its independent living facilities offers specially designed residential units for the active and ambulatory elderly and provide various ancillary services for residents, including restaurants, activity rooms and social areas; and behavioral health services to both adults and geriatric patients with psychiatric, emotional, and addictive disorders. In addition, the company’s homecare agencies assist those who wish to stay at home or in assisted living residences but still require some degree of medical care or assistance with daily activities; hospice agencies that provides hospice and palliative care; and operates pharmacies, as well as managed care insurance solutions. Further, it offers management, accounting, and financial services; and leases its properties to third party operators. The company was founded in 1971 and is based in Murfreesboro, Tennessee.

About PACS Group

PACS Group, Inc., through its subsidiaries, operates skilled nursing facilities and assisted living facilities in the United States. The company also provides senior care and independent facilities. It engages in the acquisition, ownership, and leasing of health care-related properties. The company was founded in 2013 and is based in Farmington, Utah.