Critical Contrast: RHÖN-KLINIKUM Aktiengesellschaft (OTCMKTS:RKAGY) & The Pennant Group (NASDAQ:PNTG)

RHÖN-KLINIKUM Aktiengesellschaft (OTCMKTS:RKAGY) and The Pennant Group (NASDAQ:PNTG) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares RHÖN-KLINIKUM Aktiengesellschaft and The Pennant Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RHÖN-KLINIKUM Aktiengesellschaft	N/A	N/A	N/A	$4.50	1.50
The Pennant Group	$523.60 million	0.78	$6.64 million	$0.42	32.40

The Pennant Group has higher revenue and earnings than RHÖN-KLINIKUM Aktiengesellschaft. RHÖN-KLINIKUM Aktiengesellschaft is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.2% of RHÖN-KLINIKUM Aktiengesellschaft shares are held by institutional investors. Comparatively, 83.8% of The Pennant Group shares are held by institutional investors. 10.3% of The Pennant Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for RHÖN-KLINIKUM Aktiengesellschaft and The Pennant Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RHÖN-KLINIKUM Aktiengesellschaft	0	0	0	0	N/A
The Pennant Group	0	2	1	0	2.33

The Pennant Group has a consensus target price of $14.50, indicating a potential upside of 6.54%. Given The Pennant Group’s higher possible upside, analysts plainly believe The Pennant Group is more favorable than RHÖN-KLINIKUM Aktiengesellschaft.

Profitability

This table compares RHÖN-KLINIKUM Aktiengesellschaft and The Pennant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RHÖN-KLINIKUM Aktiengesellschaft	N/A	N/A	N/A
The Pennant Group	2.39%	12.52%	3.22%

Summary

The Pennant Group beats RHÖN-KLINIKUM Aktiengesellschaft on 9 of the 10 factors compared between the two stocks.

About RHÖN-KLINIKUM Aktiengesellschaft

RHÖN-KLINIKUM Aktiengesellschaft, together with its subsidiaries, offers in-patient, semi-patient, and outpatient healthcare services in Germany. Its hospitals offer treatment services, including rehabilitation, ophthalmology, pregnancies and births, accident surgery, dentistry, tumors, neurological conditions, and treatment of thoracic, lung, vascular, nerves and the skeletal system, and heart diseases. The company was founded in 1973 and is based in Bad Neustadt an der Saale, Germany.

About The Pennant Group

The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors, who are independent or who require some support. The company operates home health, hospice, and senior living communities throughout Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.