Critical Survey: Pacific Health Care Organization (OTCMKTS:PFHO) & Quipt Home Medical (NASDAQ:QIPT)

Quipt Home Medical (NASDAQ:QIPT) and Pacific Health Care Organization (OTCMKTS:PFHO) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Insider & Institutional Ownership

42.8% of Quipt Home Medical shares are owned by institutional investors. 13.4% of Quipt Home Medical shares are owned by company insiders. Comparatively, 61.6% of Pacific Health Care Organization shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Quipt Home Medical has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Pacific Health Care Organization has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Quipt Home Medical and Pacific Health Care Organization, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quipt Home Medical	1	0	3	2	3.00
Pacific Health Care Organization	0	0	0	0	0.00

Quipt Home Medical currently has a consensus target price of $6.25, indicating a potential upside of 174.12%. Given Quipt Home Medical’s stronger consensus rating and higher probable upside, research analysts plainly believe Quipt Home Medical is more favorable than Pacific Health Care Organization.

Earnings & Valuation

This table compares Quipt Home Medical and Pacific Health Care Organization”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quipt Home Medical	$244.72 million	0.40	-$6.76 million	($0.17)	-13.41
Pacific Health Care Organization	$5.63 million	1.66	$770,000.00	$0.07	10.43

Pacific Health Care Organization has lower revenue, but higher earnings than Quipt Home Medical. Quipt Home Medical is trading at a lower price-to-earnings ratio than Pacific Health Care Organization, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Quipt Home Medical and Pacific Health Care Organization’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quipt Home Medical	-2.90%	-6.70%	-2.94%
Pacific Health Care Organization	14.16%	7.83%	7.25%

Summary

Pacific Health Care Organization beats Quipt Home Medical on 8 of the 15 factors compared between the two stocks.

About Quipt Home Medical

Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.