Financial Analysis: Pacific Health Care Organization (OTCMKTS:PFHO) vs. PACS Group (NYSE:PACS)

Pacific Health Care Organization (OTCMKTS:PFHO) and PACS Group (NYSE:PACS) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Pacific Health Care Organization and PACS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Health Care Organization	21.18%	11.76%	11.09%
PACS Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Pacific Health Care Organization and PACS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Health Care Organization	0	0	0	0	0.00
PACS Group	0	1	4	0	2.80

PACS Group has a consensus target price of $31.00, indicating a potential upside of 222.58%. Given PACS Group’s stronger consensus rating and higher possible upside, analysts plainly believe PACS Group is more favorable than Pacific Health Care Organization.

Earnings & Valuation

This table compares Pacific Health Care Organization and PACS Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Health Care Organization	$6.07 million	2.53	$880,000.00	$0.10	12.00
PACS Group	$3.11 billion	0.47	$112.87 million	N/A	N/A

PACS Group has higher revenue and earnings than Pacific Health Care Organization.

Volatility & Risk

Pacific Health Care Organization has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, PACS Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Summary

PACS Group beats Pacific Health Care Organization on 6 of the 10 factors compared between the two stocks.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.

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.