Critical Survey: Kindly MD (NASDAQ:KDLY) & The Pennant Group (NASDAQ:PNTG)

Kindly MD (NASDAQ:KDLY) and The Pennant Group (NASDAQ:PNTG) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

85.9% of The Pennant Group shares are held by institutional investors. 50.5% of Kindly MD shares are held by insiders. Comparatively, 5.8% of The Pennant Group shares are held by 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 and Earnings

This table compares Kindly MD and The Pennant Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kindly MD	$2.72 million	3.26	-$3.98 million	($0.66)	-2.23
The Pennant Group	$695.24 million	1.22	$13.38 million	$0.70	35.00

The Pennant Group has higher revenue and earnings than Kindly MD. Kindly MD 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.

Profitability

This table compares Kindly MD and The Pennant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kindly MD	N/A	N/A	N/A
The Pennant Group	3.24%	13.47%	3.81%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kindly MD and The Pennant Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kindly MD	0	0	0	0	0.00
The Pennant Group	0	2	3	0	2.60

The Pennant Group has a consensus target price of $34.80, suggesting a potential upside of 42.04%. Given The Pennant Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Pennant Group is more favorable than Kindly MD.

Summary

The Pennant Group beats Kindly MD on 11 of the 13 factors compared between the two stocks.

About Kindly MD

Kindly MD, Inc. provides healthcare services. Its services include medication management, behavioral healthcare and alternative treatments. The firm offers evaluation and management, including chronic pain, functional medicine, cognitive behavioral therapy, trauma and addiction therapy, recovery support services, overdose education efforts, peer support, limited urgent care, preventative medicine, travel services, and hormone therapy. The company was founded by Timothy Pickett in December 2019 and is headquartered in Murray, UT.

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.