Contrasting Pediatrix Medical Group (NYSE:MD) and PACS Group (NYSE:PACS)

Pediatrix Medical Group (NYSE:MD) and PACS Group (NYSE:PACS) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Volatility & Risk

Pediatrix Medical Group has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, PACS Group has a beta of -0.74, indicating that its stock price is 174% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pediatrix Medical Group	8.44%	20.45%	7.94%
PACS Group	3.29%	21.39%	3.09%

Earnings and Valuation

This table compares Pediatrix Medical Group and PACS Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pediatrix Medical Group	$2.01 billion	0.92	-$99.07 million	$1.90	11.37
PACS Group	$4.09 billion	1.18	$55.76 million	$1.05	29.36

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

Insider & Institutional Ownership

97.7% of Pediatrix Medical Group shares are held by institutional investors. 0.9% of Pediatrix Medical Group shares are held by insiders. Comparatively, 70.4% of PACS Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Pediatrix Medical Group and PACS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pediatrix Medical Group	0	4	1	1	2.50
PACS Group	1	2	3	0	2.33

Pediatrix Medical Group currently has a consensus target price of $21.00, suggesting a potential downside of 2.78%. PACS Group has a consensus target price of $26.75, suggesting a potential downside of 13.21%. Given Pediatrix Medical Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Pediatrix Medical Group is more favorable than PACS Group.

Summary

Pediatrix Medical Group beats PACS Group on 8 of the 15 factors compared between the two stocks.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.

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.