PACS Group (NYSE:PACS – Get Free Report) and Sotera Health (NASDAQ:SHC – Get Free Report) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
91.0% of Sotera Health shares are held by institutional investors. 70.4% of PACS Group shares are held by insiders. Comparatively, 15.4% of Sotera Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for PACS Group and Sotera Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PACS Group | 0 | 1 | 4 | 1 | 3.00 |
| Sotera Health | 0 | 3 | 8 | 0 | 2.73 |
Earnings & Valuation
This table compares PACS Group and Sotera Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PACS Group | $5.29 billion | 0.98 | $191.54 million | $1.23 | 26.86 |
| Sotera Health | $1.16 billion | 3.79 | $77.94 million | $0.27 | 57.24 |
PACS Group has higher revenue and earnings than Sotera Health. PACS Group is trading at a lower price-to-earnings ratio than Sotera Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PACS Group and Sotera Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PACS Group | 3.62% | 22.55% | 3.45% |
| Sotera Health | 6.70% | 42.38% | 6.91% |
Volatility & Risk
PACS Group has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Sotera Health has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.
Summary
Sotera Health beats PACS Group on 8 of the 15 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 Sotera Health
Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems. The company also provides microbiological and analytical chemistry testing, as well as technical assistance, regulatory consulting, and advisory services. It serves medical devices, pharmaceuticals, food safety, agricultural products, cancer treatment, and high-performance materials industries, as well as commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.
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