PACS Group, listed on the NYSE under the ticker symbol PACS, has come under scrutiny as analysts evaluate its performance against competitors within the Medical Services sector. This analysis focuses on various factors, including valuation, dividends, risk, earnings, profitability, and institutional ownership.
Volatility and Risk Assessment
With a beta of 1.05, PACS Group’s stock price exhibits 5% more volatility than the S&P 500 index. In contrast, its competitors show a higher average volatility, with a beta of 1.53, indicating their stock prices are 53% more volatile than the S&P 500. This distinction highlights PACS Group’s relatively stable position within a competitive landscape.
Valuation and Earnings Performance
A thorough comparison of gross revenue and earnings per share (EPS) reveals notable differences between PACS Group and its peers. While specific revenue figures were not disclosed, the analysis indicates that PACS Group has not kept pace with the financial performance of its competitors.
Institutional ownership is also a key consideration. Currently, 58.1% of shares in the Medical Services industry are held by institutional investors, while insiders own 13.3% of shares across the sector. Strong institutional ownership often suggests that significant financial entities, including hedge funds and endowments, foresee long-term growth potential in the stock.
Analysts from MarketBeat report that PACS Group has a consensus price target of $26.75, which represents a potential downside of 10.71%. Comparatively, the broader Medical Services sector shows a potential upside of 341.92%. This disparity suggests that analysts perceive PACS Group as having less favorable growth prospects than its rivals.
Profitability metrics further underscore PACS Group’s challenges. In a comparative analysis of net margins, return on equity, and return on assets, PACS Group falls short against its competitors. Specifically, PACS Group’s performance was less favorable in 8 out of 13 evaluated factors.
In summary, while PACS Group operates skilled nursing and assisted living facilities in the United States, it faces a competitive environment marked by stronger performance from its rivals. Founded in 2013 and based in Farmington, Utah, PACS Group’s business model includes the acquisition, ownership, and leasing of healthcare-related properties. As analysts continue to monitor the company’s trajectory, these insights provide valuable context for potential investors and stakeholders.
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