RadNet (NASDAQ:RDNT – Get Free Report) and The Pennant Group (NASDAQ:PNTG – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
77.9% of RadNet shares are owned by institutional investors. Comparatively, 85.9% of The Pennant Group shares are owned by institutional investors. 5.6% of RadNet shares are owned by insiders. Comparatively, 5.4% of The Pennant Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for RadNet and The Pennant Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RadNet | 1 | 0 | 4 | 3 | 3.13 |
| The Pennant Group | 0 | 3 | 3 | 0 | 2.50 |
Profitability
This table compares RadNet and The Pennant Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RadNet | -0.78% | 2.41% | 0.82% |
| The Pennant Group | 3.36% | 9.85% | 4.04% |
Risk & Volatility
RadNet has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, The Pennant Group has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Valuation & Earnings
This table compares RadNet and The Pennant Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RadNet | $1.83 billion | 3.30 | $2.79 million | ($0.20) | -392.20 |
| The Pennant Group | $695.24 million | 1.19 | $22.56 million | $0.78 | 30.77 |
The Pennant Group has lower revenue, but higher earnings than RadNet. RadNet 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.
Summary
The Pennant Group beats RadNet on 8 of the 15 factors compared between the two stocks.
About RadNet
RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.
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 home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.
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