Analyzing PACS Group (NYSE:PACS) and Surgery Partners (NASDAQ:SGRY)

PACS Group (NYSE:PACS) and Surgery Partners (NASDAQ:SGRY) are both mid-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Risk and Volatility

PACS Group has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares PACS Group and Surgery Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$5.29 billion	1.49	$191.54 million	$1.77	28.07
Surgery Partners	$3.37 billion	0.90	-$77.90 million	($0.70)	-33.14

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

Analyst Recommendations

This is a summary of recent ratings and target prices for PACS Group and Surgery Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	0	1	7	0	2.88
Surgery Partners	1	8	3	0	2.17

PACS Group currently has a consensus price target of $61.33, indicating a potential upside of 23.45%. Surgery Partners has a consensus price target of $20.14, indicating a potential downside of 13.21%. Given PACS Group’s stronger consensus rating and higher possible upside, research analysts clearly believe PACS Group is more favorable than Surgery Partners.

Profitability

This table compares PACS Group and Surgery Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PACS Group	4.87%	31.98%	6.07%
Surgery Partners	-2.63%	0.88%	0.34%

Summary

PACS Group beats Surgery Partners on 11 of the 12 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 Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.