WallStSmart

PACS Group, Inc. (PACS)vsTenet Healthcare Corporation (THC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tenet Healthcare Corporation generates 303% more annual revenue ($21.31B vs $5.29B). THC leads profitability with a 6.6% profit margin vs 3.6%. PACS appears more attractively valued with a PEG of 1.03. THC earns a higher WallStSmart Score of 66/100 (B-).

PACS

Buy

58

out of 100

Grade: C

Growth: 8.7Profit: 6.0Value: 10.0Quality: 3.5
Piotroski: 5/9Altman Z: 1.32

THC

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 6/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PACSUndervalued (+31.4%)

Margin of Safety

+31.4%

Fair Value

$57.10

Current Price

$32.61

$24.49 discount

UndervaluedFair: $57.10Overvalued
THCUndervalued (+68.8%)

Margin of Safety

+68.8%

Fair Value

$724.93

Current Price

$200.04

$524.89 discount

UndervaluedFair: $724.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PACS2 strengths · Avg: 9.5/10
EPS GrowthGrowth
57.2%10/10

Earnings expanding 57.2% YoY

Return on EquityProfitability
23.0%9/10

Every $100 of equity generates 23 in profit

THC3 strengths · Avg: 8.3/10
Return on EquityProfitability
27.0%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
27.6%8/10

Earnings expanding 27.6% YoY

Areas to Watch

PACS4 concerns · Avg: 2.8/10
P/E RatioValuation
27.6x4/10

Moderate valuation

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Free Cash FlowQuality
$-15.97M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.322/10

Distress zone — elevated risk

THC3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

PEG RatioValuation
4.692/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PACS

The strongest argument for PACS centers on EPS Growth, Return on Equity. Revenue growth of 12.4% demonstrates continued momentum. PEG of 1.03 suggests the stock is reasonably priced for its growth.

Bull Case : THC

The strongest argument for THC centers on Return on Equity, P/E Ratio, EPS Growth.

Bear Case : PACS

The primary concerns for PACS are P/E Ratio, Profit Margin, Free Cash Flow. Debt-to-equity of 4.93 is elevated, increasing financial risk. Thin 3.6% margins leave little buffer for downturns.

Bear Case : THC

The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

PACS is growing revenue faster at 12.4% — sustainability is the question.

THC generates stronger free cash flow (367M), providing more financial flexibility.

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

THC scores higher overall (66/100 vs 58/100). PACS offers better value entry with a 31.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

PACS Group, Inc.

HEALTHCARE · MEDICAL CARE FACILITIES · USA

PACS Group, Inc. is a leading technology solutions provider focused on enhancing operational efficiency and productivity across a wide array of industries. The company excels in developing innovative software and hardware systems that optimize workflows and enhance data management capabilities. With a strong commitment to research and development, PACS Group is well-positioned to capitalize on emerging technological trends, reinforcing its status as a key player in the digital transformation landscape. Its strategic partnerships and extensive market presence further strengthen its competitive advantage, presenting a compelling investment opportunity for institutional investors seeking growth in the evolving technology sector.

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Tenet Healthcare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.

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