Analyzing Stock Potential: Pediatrix Medical vs. PACS Group
Investors are closely examining the stock potential of two medical companies: Pediatrix Medical Group and PACS Group. The analysis focuses on various factors, including risk, valuation, profitability, and institutional ownership, to determine which company presents a better investment opportunity.
Volatility and Risk Assessment
In terms of volatility, PACS Group has a beta of -0.63. This indicates that its share price is 163% less volatile than the S&P 500. In comparison, Pediatrix Medical Group shows a beta of 0.77, meaning its share price is 23% less volatile than the market benchmark. These figures suggest that PACS Group may offer more stability for risk-averse investors.
Profitability and Valuation Comparison
When comparing profitability metrics, PACS Group outperforms Pediatrix Medical Group in terms of revenue and earnings. Despite this, Pediatrix Medical Group benefits from a lower price-to-earnings ratio, indicating it may be a more affordable investment option at its current trading level.
Analysts have provided insights into the stock forecasts for both companies. Currently, PACS Group has a consensus price target of $26.75, suggesting a potential downside of 13.73%. Meanwhile, Pediatrix Medical Group has a more favorable consensus price target of $21.00, reflecting a potential downside of only 2.22%. Given these projections, analysts lean towards Pediatrix Medical Group as the more promising investment.
Institutional ownership also serves as an important indicator of investor confidence. Approximately 97.7% of Pediatrix Medical Group shares are held by institutional investors, reflecting strong support from hedge funds and money managers. In contrast, only 70.4% of PACS Group shares are owned by company insiders, and merely 0.9% of Pediatrix’s shares fall into that same category. This disparity suggests that institutional investors have greater confidence in the long-term performance of Pediatrix.
In summary, Pediatrix Medical Group excels in 8 out of the 15 factors compared, making it a more attractive option for potential investors compared to PACS Group.
About PACS Group
Founded in 2013 and headquartered in Farmington, Utah, PACS Group, Inc. operates skilled nursing and assisted living facilities across the United States. The company engages in acquiring, owning, and leasing healthcare-related properties, providing essential services to senior populations.
About Pediatrix Medical Group
Founded in 1979 and based in Sunrise, Florida, Pediatrix Medical Group, Inc. offers specialized care services in newborn, maternal-fetal, and pediatric cardiology, among others. The company provides clinical care through a network of neonatal physician subspecialists and other pediatric clinicians. Notably, Pediatrix changed its name from MEDNAX, Inc. in July 2022, reflecting a renewed focus on its core services.
As investors navigate the complexities of the healthcare market, the comparison between these two companies highlights key factors that could influence stock performance and investment choices.
