Head to Head Review: The Pennant Group (NASDAQ:PNTG) & Precipio (NASDAQ:PRPO)

Precipio (NASDAQ:PRPO) and The Pennant Group (NASDAQ:PNTG) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Precipio and The Pennant Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precipio	1	0	0	0	1.00
The Pennant Group	0	1	7	0	2.88

The Pennant Group has a consensus target price of $41.60, indicating a potential upside of 4.10%. Given The Pennant Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Pennant Group is more favorable than Precipio.

Institutional & Insider Ownership

10.4% of Precipio shares are held by institutional investors. Comparatively, 85.9% of The Pennant Group shares are held by institutional investors. 16.6% of Precipio shares are held by company insiders. Comparatively, 6.9% of The Pennant Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Precipio and The Pennant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precipio	-4.47%	-8.49%	-5.75%
The Pennant Group	2.93%	10.33%	4.20%

Earnings & Valuation

This table compares Precipio and The Pennant Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precipio	$27.20 million	1.54	-$360,000.00	($0.64)	-36.64
The Pennant Group	$947.71 million	1.47	$29.58 million	$0.90	44.40

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.

Risk & Volatility

Precipio has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, The Pennant Group has a beta of 1.25, suggesting that its share price is 25% 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 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.

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.