Financial Review: PACS Group (NYSE:PACS) & Danaher (NYSE:DHR)

PACS Group (NYSE:PACS) and Danaher (NYSE:DHR) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

79.1% of Danaher shares are owned by institutional investors. 11.1% of Danaher 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.

Valuation & Earnings

This table compares PACS Group and Danaher”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$3.11 billion	0.60	$112.87 million	$0.31	39.78
Danaher	$24.27 billion	6.11	$3.90 billion	$4.85	43.28

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

Profitability

This table compares PACS Group and Danaher’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
Danaher	14.44%	10.92%	6.99%

Analyst Recommendations

This is a summary of current ratings and recommmendations for PACS Group and Danaher, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	1	1	3	0	2.40
Danaher	0	5	18	0	2.78

PACS Group presently has a consensus target price of $26.25, suggesting a potential upside of 112.84%. Danaher has a consensus target price of $243.39, suggesting a potential upside of 15.96%. Given PACS Group’s higher possible upside, analysts clearly believe PACS Group is more favorable than Danaher.

Volatility and Risk

PACS Group has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Danaher has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Summary

Danaher beats PACS Group on 12 of the 14 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 Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.