Comparing The Pennant Group (NASDAQ:PNTG) & Precipio (NASDAQ:PRPO)
by Tristan Rich · The Markets DailyThe Pennant Group (NASDAQ:PNTG – Get Free Report) and Precipio (NASDAQ:PRPO – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Insider & Institutional Ownership
85.9% of The Pennant Group shares are owned by institutional investors. Comparatively, 10.4% of Precipio shares are owned by institutional investors. 6.9% of The Pennant Group shares are owned by company insiders. Comparatively, 16.6% of Precipio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares The Pennant Group and Precipio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Pennant Group | 2.93% | 10.33% | 4.20% |
| Precipio | -4.47% | -8.49% | -5.75% |
Earnings & Valuation
This table compares The Pennant Group and Precipio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Pennant Group | $947.71 million | 1.44 | $29.58 million | $0.90 | 43.33 |
| Precipio | $24.05 million | 1.76 | -$360,000.00 | ($0.64) | -37.00 |
The Pennant Group has higher revenue and earnings than Precipio. Precipio is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for The Pennant Group and Precipio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Pennant Group | 0 | 1 | 7 | 0 | 2.88 |
| Precipio | 1 | 0 | 0 | 0 | 1.00 |
The Pennant Group currently has a consensus price target of $41.60, indicating a potential upside of 6.67%. Given The Pennant Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe The Pennant Group is more favorable than Precipio.
Volatility and Risk
The Pennant Group has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Summary
The Pennant Group beats Precipio on 11 of the 14 factors compared between the two stocks.
About The Pennant Group
The Pennant Group, Inc. provides healthcare services in the United States. 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, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.
About Precipio
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.