Contrasting InnovAge (NASDAQ:INNV) and PACS Group (NYSE:PACS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InnovAge	-0.26%	-1.03%	-0.47%
PACS Group	4.85%	29.55%	5.23%

Insider and Institutional Ownership

12.3% of InnovAge shares are held by institutional investors. 1.0% of InnovAge shares are held by company insiders. Comparatively, 70.1% of PACS Group 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.

Volatility & Risk

InnovAge has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, PACS Group has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	1	1	0	1.75
PACS Group	0	2	5	0	2.71

InnovAge presently has a consensus target price of $10.50, indicating a potential upside of 18.11%. PACS Group has a consensus target price of $58.80, indicating a potential upside of 36.19%. Given PACS Group’s stronger consensus rating and higher possible upside, analysts plainly believe PACS Group is more favorable than InnovAge.

Earnings and Valuation

This table compares InnovAge and PACS Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$989.71 million	1.23	-$2.54 million	($0.02)	-444.50
PACS Group	$5.29 billion	1.29	$191.54 million	$1.72	25.10

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

Summary

PACS Group beats InnovAge on 12 of the 14 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

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.