Financial Analysis: Surgery Partners (NASDAQ:SGRY) vs. PACS Group (NYSE:PACS)

Surgery Partners (NASDAQ:SGRY) and PACS Group (NYSE:PACS) are both mid-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surgery Partners	-2.63%	0.88%	0.34%
PACS Group	4.85%	29.55%	5.23%

Valuation and Earnings

This table compares Surgery Partners and PACS Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.31 billion	0.92	-$77.90 million	($0.70)	-33.04
PACS Group	$5.29 billion	1.39	$191.54 million	$1.72	27.09

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

Analyst Ratings

This is a summary of current ratings and price targets for Surgery Partners and PACS Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	1	8	3	0	2.17
PACS Group	0	2	5	0	2.71

Surgery Partners presently has a consensus target price of $20.14, suggesting a potential downside of 12.94%. PACS Group has a consensus target price of $58.80, suggesting a potential upside of 26.21%. Given PACS Group’s stronger consensus rating and higher possible upside, analysts plainly believe PACS Group is more favorable than Surgery Partners.

Volatility & Risk

Surgery Partners has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, PACS Group has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500.

Summary

PACS Group beats Surgery Partners on 10 of the 12 factors compared between the two stocks.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

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.