Financial Analysis: Diversicare Healthcare Services (OTCMKTS:DVCR) and PACS Group (NYSE:PACS)

Diversicare Healthcare Services (OTCMKTS:DVCR) 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 valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Insider and Institutional Ownership

33.1% of Diversicare Healthcare Services shares are held by institutional investors. 34.3% of Diversicare Healthcare Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Diversicare Healthcare Services and PACS Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversicare Healthcare Services	$475.72 million	0.15	$5.16 million	$0.36	28.03
PACS Group	$3.56 billion	1.75	$112.87 million	N/A	N/A

PACS Group has higher revenue and earnings than Diversicare Healthcare Services.

Analyst Ratings

This is a summary of current recommendations and price targets for Diversicare Healthcare Services and PACS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversicare Healthcare Services	0	0	0	0	N/A
PACS Group	0	0	8	0	3.00

PACS Group has a consensus target price of $39.38, suggesting a potential downside of 3.42%. Given PACS Group’s higher probable upside, analysts plainly believe PACS Group is more favorable than Diversicare Healthcare Services.

Profitability

This table compares Diversicare Healthcare Services and PACS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversicare Healthcare Services	0.53%	-15.01%	1.05%
PACS Group	N/A	N/A	N/A

Summary

PACS Group beats Diversicare Healthcare Services on 6 of the 10 factors compared between the two stocks.

About Diversicare Healthcare Services

Diversicare Healthcare Services, Inc. provides post-acute care services. The firm offers services to patients and residents including skilled nursing, ancillary health care services and assisted living. It also provides long-term care centres and rehabilitative, nutritional, respiratory and other specialized ancillary services. The company was founded in 1994 and is headquartered in Brentwood, TN.

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.