Financial Analysis: PACS Group (NYSE:PACS) vs. GeneDx (NASDAQ:WGS)

PACS Group (NYSE:PACS) and GeneDx (NASDAQ:WGS) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares PACS Group and GeneDx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$5.29 billion	1.12	$191.54 million	$1.56	24.06
GeneDx	$427.54 million	2.83	-$21.02 million	($2.68)	-15.21

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PACS Group	4.49%	26.47%	4.36%
GeneDx	-17.58%	9.15%	5.21%

Insider & Institutional Ownership

61.7% of GeneDx shares are held by institutional investors. 70.1% of PACS Group shares are held by company insiders. Comparatively, 29.6% of GeneDx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for PACS Group and GeneDx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	0	2	4	0	2.67
GeneDx	1	1	6	0	2.63

PACS Group currently has a consensus price target of $45.60, indicating a potential upside of 21.48%. GeneDx has a consensus price target of $96.43, indicating a potential upside of 136.63%. Given GeneDx’s higher possible upside, analysts plainly believe GeneDx is more favorable than PACS Group.

Volatility and Risk

PACS Group has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, GeneDx has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.

Summary

PACS Group beats GeneDx 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 GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.