PACS Group (NYSE:PACS) versus RadNet (NASDAQ:RDNT) Head to Head Analysis

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

Volatility & Risk

RadNet has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, PACS Group has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.93%	2.61%	0.91%
PACS Group	4.85%	29.55%	5.23%

Insider and Institutional Ownership

77.9% of RadNet shares are owned by institutional investors. 5.1% of RadNet shares are owned by company insiders. Comparatively, 70.1% of PACS Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for RadNet and PACS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	1	0	5	3	3.11
PACS Group	0	2	5	0	2.71

RadNet presently has a consensus price target of $90.00, indicating a potential upside of 29.09%. PACS Group has a consensus price target of $58.80, indicating a potential upside of 31.96%. Given PACS Group’s higher probable upside, analysts clearly believe PACS Group is more favorable than RadNet.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$2.04 billion	2.69	-$18.65 million	($0.27)	-258.22
PACS Group	$5.29 billion	1.33	$191.54 million	$1.72	25.91

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

Summary

PACS Group beats RadNet on 9 of the 14 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 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.