Head-To-Head Comparison: COMPASS Pathways (NASDAQ:CMPS) and PACS Group (NYSE:PACS)

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

Earnings & Valuation

This table compares PACS Group and COMPASS Pathways”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACS Group	$4.09 billion	1.31	$55.76 million	$1.05	32.68
COMPASS Pathways	N/A	N/A	-$155.12 million	($2.72)	-2.47

PACS Group has higher revenue and earnings than COMPASS Pathways. COMPASS Pathways 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 and Institutional Ownership

46.2% of COMPASS Pathways shares are held by institutional investors. 70.4% of PACS Group shares are held by company insiders. Comparatively, 3.9% of COMPASS Pathways shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

PACS Group has a beta of -0.68, suggesting that its share price is 168% less volatile than the S&P 500. Comparatively, COMPASS Pathways has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PACS Group and COMPASS Pathways, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACS Group	1	1	3	0	2.40
COMPASS Pathways	1	1	7	0	2.67

PACS Group presently has a consensus target price of $43.25, suggesting a potential upside of 26.06%. COMPASS Pathways has a consensus target price of $16.25, suggesting a potential upside of 142.18%. Given COMPASS Pathways’ stronger consensus rating and higher probable upside, analysts plainly believe COMPASS Pathways is more favorable than PACS Group.

Profitability

This table compares PACS Group and COMPASS Pathways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PACS Group	3.29%	21.39%	3.09%
COMPASS Pathways	N/A	-111.18%	-56.55%

Summary

PACS Group beats COMPASS Pathways on 8 of the 13 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 COMPASS Pathways

COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.