The Pennant Group (NASDAQ:PNTG – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Profitability
This table compares The Pennant Group and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Pennant Group | 2.93% | 10.33% | 4.20% |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
Volatility & Risk
The Pennant Group has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500.
Institutional & Insider Ownership
85.9% of The Pennant Group shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 6.9% of The Pennant Group shares are owned by insiders. Comparatively, 23.5% of Clover Health Investments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares The Pennant Group and Clover Health Investments”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Pennant Group | $947.71 million | 1.49 | $29.58 million | $0.90 | 45.00 |
| Clover Health Investments | $1.92 billion | 1.19 | -$85.55 million | ($0.05) | -86.20 |
The Pennant Group has higher earnings, but lower revenue than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for The Pennant Group and Clover Health Investments, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Pennant Group | 0 | 1 | 5 | 0 | 2.83 |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
The Pennant Group presently has a consensus target price of $46.00, indicating a potential upside of 13.58%. Clover Health Investments has a consensus target price of $5.00, indicating a potential upside of 16.01%. Given Clover Health Investments’ higher possible upside, analysts plainly believe Clover Health Investments is more favorable than The Pennant Group.
Summary
The Pennant Group beats Clover Health Investments on 10 of the 14 factors compared between the two stocks.
About The Pennant Group
The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
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