Cross Country Healthcare (NASDAQ:CCRN – Get Free Report) and PACS Group (NYSE:PACS – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Risk & Volatility
Cross Country Healthcare has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, PACS Group has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.
Profitability
This table compares Cross Country Healthcare and PACS Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cross Country Healthcare | -9.84% | -0.74% | -0.54% |
| PACS Group | 4.85% | 29.55% | 5.23% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cross Country Healthcare | 1 | 9 | 0 | 0 | 1.90 |
| PACS Group | 0 | 1 | 5 | 1 | 3.00 |
Cross Country Healthcare presently has a consensus target price of $12.05, suggesting a potential downside of 9.06%. PACS Group has a consensus target price of $56.00, suggesting a potential upside of 26.46%. Given PACS Group’s stronger consensus rating and higher probable upside, analysts plainly believe PACS Group is more favorable than Cross Country Healthcare.
Institutional & Insider Ownership
96.0% of Cross Country Healthcare shares are owned by institutional investors. 6.3% of Cross Country Healthcare shares are owned by insiders. Comparatively, 70.1% of PACS Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Cross Country Healthcare and PACS Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cross Country Healthcare | $1.00 billion | 0.43 | -$94.85 million | ($3.05) | -4.34 |
| PACS Group | $5.29 billion | 1.33 | $191.54 million | $1.72 | 25.75 |
PACS Group has higher revenue and earnings than Cross Country Healthcare. Cross Country Healthcare 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 Cross Country Healthcare on 13 of the 15 factors compared between the two stocks.
About Cross Country Healthcare
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company’s Nurse and Allied Staffing segment provides traditional staffing, recruiting, and value-added total talent solutions, including temporary and permanent placement of travel and local nurse and, allied professionals; temporary placement of healthcare leaders within nursing, allied, physician, and human resources; vendor neutral and managed services programs; education healthcare services; in-home care services; and outsourcing services. It also offers staffing solutions for registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and clinical and non-clinical professionals on long-term contract assignments, as well as workforce solutions, including MSP, VMS, in- home care, education healthcare, RPO, project management, and other outsourcing and consultative services. This segment provides retained search services for healthcare professionals, as well as contingent search and recruitment process outsourcing services. It serves public and private acute care and non-acute care hospitals, government facilities, local and national healthcare plans, managed care providers, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, and other healthcare providers under the Cross Country brand. Its Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Cross Country Locums brand on temporary assignments. It serves various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
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.
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