The Ensign Group (NASDAQ:ENSG) and The Pennant Group (NASDAQ:PNTG) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares The Ensign Group and The Pennant Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Ensign Group||$2.07 billion||1.06||$92.36 million||$1.79||22.94|
|The Pennant Group||N/A||N/A||N/A||N/A||N/A|
This is a summary of recent recommendations and price targets for The Ensign Group and The Pennant Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Ensign Group||0||1||3||0||2.75|
|The Pennant Group||0||1||0||0||2.00|
The Ensign Group presently has a consensus target price of $53.00, suggesting a potential upside of 29.08%. The Pennant Group has a consensus target price of $20.00, suggesting a potential downside of 7.24%. Given The Ensign Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe The Ensign Group is more favorable than The Pennant Group.
This table compares The Ensign Group and The Pennant Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Ensign Group||4.84%||17.27%||5.61%|
|The Pennant Group||N/A||N/A||N/A|
The Ensign Group pays an annual dividend of $0.69 per share and has a dividend yield of 1.7%. The Pennant Group does not pay a dividend. The Ensign Group pays out 38.5% of its earnings in the form of a dividend.
Insider and Institutional Ownership
80.4% of The Ensign Group shares are held by institutional investors. Comparatively, 2.2% of The Pennant Group shares are held by institutional investors. 6.7% of The Ensign Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
The Ensign Group beats The Pennant Group on 10 of the 11 factors compared between the two stocks.
The Ensign Group Company Profile
The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company operates in three segments: Transitional and Skilled Services; Assisted and Independent Living Services; and Home Health and Hospice Services. The Transitional and Skilled Services segment offers a range of medical, nursing, rehabilitative, and pharmacy services, as well as routine services, such as daily dietary, social, and recreational services to Medicaid, private pay, managed care, and Medicare payors. The Assisted and Independent Living Services segment provides residential accommodations, activities, meals, security, housekeeping, and assistance in the activities of daily living to independent seniors. The Home Health and Hospice Services segment offers nursing, speech, occupational and physical therapists, medical social workers, and certified home health aide services; and hospice care services, including physical, spiritual, and psychosocial services comprising palliative and clinical care, education, and counseling for terminally ill individuals and their families. The company also provides mobile ancillary services that include digital x-ray, ultrasound, electrocardiograms, laboratory services, sub-acute services, and patient transportation. As of April 2, 2019, it operated 248 healthcare facilities; and 24 hospice agencies, 25 home health agencies, and 7 home care businesses in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska, Oregon, Wisconsin, Kansas, South Carolina, Oklahoma, and Wyoming. The Ensign Group, Inc. was founded in 1999 and is based in Mission Viejo, California.
The Pennant Group Company Profile
The Pennant Group, Inc. offers home health, hospice, and senior living services across Arizona, California, Colorado, Idaho, Iowa, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, and meals, as well as housekeeping and assistance in the activities of daily living to seniors, who are independent or who require some support. As of June 30, 2019, the company provided home health and hospice services through 62 agencies; and assisted living, independent living, and memory care services in 51 communities with 3,872 total units. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho. The Pennant Group, Inc. operates independently of The Ensign Group, Inc. as of October 1, 2019.
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