The Ensign Group (NASDAQ:ENSG) and PACS Group (NYSE:PACS) Critical Review

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

Insider & Institutional Ownership

96.1% of The Ensign Group shares are owned by institutional investors. 3.9% of The Ensign Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PACS Group	N/A	N/A	N/A
The Ensign Group	5.68%	17.32%	6.32%

Analyst Ratings

This is a breakdown of current recommendations and price targets for PACS Group and The Ensign Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	0	0	8	0	3.00
The Ensign Group	0	1	4	0	2.80

PACS Group presently has a consensus target price of $39.38, indicating a potential downside of 6.25%. The Ensign Group has a consensus target price of $152.20, indicating a potential upside of 1.48%. Given The Ensign Group’s higher possible upside, analysts plainly believe The Ensign Group is more favorable than PACS Group.

Earnings and Valuation

This table compares PACS Group and The Ensign Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$3.11 billion	2.06	$112.87 million	N/A	N/A
The Ensign Group	$3.97 billion	2.15	$209.40 million	$3.80	39.47

The Ensign Group has higher revenue and earnings than PACS Group.

Summary

The Ensign Group beats PACS Group on 9 of the 11 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 The Ensign Group

The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The company's Skilled Services segment engages in the operation of skilled nursing facilities and rehabilitation therapy services for patients with chronic conditions, prolonged illness, and the elderly; and offers nursing facilities including specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management, as well as standard services comprising room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. Its Standard Bearer segment is comprised of selected real estate properties owned by Standard Bearer and leased to skilled nursing and senior living operators. In addition, the company provides ancillary services consisting of digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, and long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities, as well as mobile diagnostics. It operates in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.