Financial Analysis: PACS Group (NYSE:PACS) versus Cencora (NYSE:COR)

PACS Group (NYSE:PACS) and Cencora (NYSE:COR) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares PACS Group and Cencora’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%
Cencora	0.78%	135.20%	4.20%

Analyst Recommendations

This is a breakdown of current ratings for PACS Group and Cencora, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	0	2	5	0	2.71
Cencora	0	3	12	0	2.80

PACS Group presently has a consensus target price of $48.00, indicating a potential upside of 27.06%. Cencora has a consensus target price of $380.25, indicating a potential upside of 38.27%. Given Cencora’s stronger consensus rating and higher possible upside, analysts clearly believe Cencora is more favorable than PACS Group.

Valuation and Earnings

This table compares PACS Group and Cencora”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	1.13	$191.54 million	$1.56	24.22
Cencora	$321.33 billion	0.17	$1.55 billion	$13.04	21.09

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

Volatility & Risk

PACS Group has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, Cencora has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

97.5% of Cencora shares are held by institutional investors. 70.1% of PACS Group shares are held by insiders. Comparatively, 0.4% of Cencora shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cencora beats PACS Group on 9 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 Cencora

Cencora, Inc. sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals primarily in Europe; and provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.