Critical Contrast: RadNet (NASDAQ:RDNT) versus PACS Group (NYSE:PACS)

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

Analyst Recommendations

This is a breakdown of current ratings for PACS Group and RadNet, as reported by MarketBeat.

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

PACS Group presently has a consensus target price of $58.80, indicating a potential upside of 23.29%. RadNet has a consensus target price of $90.00, indicating a potential upside of 29.22%. Given RadNet’s stronger consensus rating and higher probable upside, analysts plainly believe RadNet is more favorable than PACS Group.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$5.55 billion	1.36	$191.54 million	$1.72	27.73
RadNet	$2.04 billion	2.69	-$18.65 million	($0.27)	-257.96

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.

Institutional & Insider Ownership

77.9% of RadNet shares are held by institutional investors. 70.1% of PACS Group shares are held by company insiders. Comparatively, 5.1% of RadNet shares are held 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.

Volatility & Risk

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

Summary

PACS Group beats RadNet on 8 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 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.