Critical Review: Diversicare Healthcare Services (OTCMKTS:DVCR) versus PACS Group (NYSE:PACS)

Diversicare Healthcare Services (OTCMKTS:DVCR) and PACS Group (NYSE:PACS) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Diversicare Healthcare Services and PACS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversicare Healthcare Services	0	0	0	0	N/A
PACS Group	0	0	8	0	3.00

PACS Group has a consensus target price of $39.38, indicating a potential downside of 6.45%. Given PACS Group’s higher possible upside, analysts clearly believe PACS Group is more favorable than Diversicare Healthcare Services.

Profitability

This table compares Diversicare Healthcare Services and PACS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversicare Healthcare Services	0.53%	-15.01%	1.05%
PACS Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Diversicare Healthcare Services and PACS Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversicare Healthcare Services	$475.72 million	0.15	$5.16 million	$0.36	28.03
PACS Group	$3.56 billion	1.80	$112.87 million	N/A	N/A

PACS Group has higher revenue and earnings than Diversicare Healthcare Services.

Insider & Institutional Ownership

33.1% of Diversicare Healthcare Services shares are held by institutional investors. 34.3% of Diversicare Healthcare Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PACS Group beats Diversicare Healthcare Services on 6 of the 10 factors compared between the two stocks.

About Diversicare Healthcare Services

Diversicare Healthcare Services, Inc. provides post-acute care services. The firm offers services to patients and residents including skilled nursing, ancillary health care services and assisted living. It also provides long-term care centres and rehabilitative, nutritional, respiratory and other specialized ancillary services. The company was founded in 1994 and is headquartered in Brentwood, TN.

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.