Reviewing HealthEquity (NASDAQ:HQY) & PACS Group (NYSE:PACS)

PACS Group (NYSE:PACS) and HealthEquity (NASDAQ:HQY) are both mid-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Volatility and Risk

PACS Group has a beta of -0.64, meaning that its stock price is 164% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for PACS Group and HealthEquity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	0	1	4	1	3.00
HealthEquity	1	2	11	1	2.80

PACS Group currently has a consensus price target of $44.40, suggesting a potential upside of 31.60%. HealthEquity has a consensus price target of $112.00, suggesting a potential upside of 45.85%. Given HealthEquity’s higher possible upside, analysts clearly believe HealthEquity is more favorable than PACS Group.

Insider and Institutional Ownership

99.6% of HealthEquity shares are owned by institutional investors. 70.4% of PACS Group shares are owned by company insiders. Comparatively, 1.5% of HealthEquity shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PACS Group	3.62%	22.55%	3.45%
HealthEquity	14.86%	12.94%	8.06%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$5.29 billion	1.00	$191.54 million	$1.23	27.43
HealthEquity	$1.20 billion	5.47	$96.70 million	$2.18	35.22

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

Summary

HealthEquity beats PACS Group on 9 of the 14 factors compared between the two stocks.

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.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.