WallStSmart

PACS Group, Inc. (PACS)vsUniversal Health Services Inc (UHS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Universal Health Services Inc generates 228% more annual revenue ($17.36B vs $5.29B). UHS leads profitability with a 8.6% profit margin vs 3.6%. PACS appears more attractively valued with a PEG of 1.03. UHS earns a higher WallStSmart Score of 76/100 (B+).

PACS

Buy

58

out of 100

Grade: C

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

UHS

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 7.0Value: 10.0Quality: 7.5
Piotroski: 6/9Altman Z: 2.97
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
UHSUndervalued (+78.6%)

Margin of Safety

+78.6%

Fair Value

$1081.08

Current Price

$186.72

$894.36 discount

UndervaluedFair: $1081.08Overvalued

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

UHS4 strengths · Avg: 8.8/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
42.7%8/10

Earnings expanding 42.7% 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

UHS0 concerns · Avg: 0/10

No major concerns identified

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 : UHS

The strongest argument for UHS centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.29 suggests the stock is reasonably priced for its 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 : UHS

No major red flags identified for UHS, but monitor valuation.

Key Dynamics to Monitor

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

UHS generates stronger free cash flow (293M), providing more financial flexibility.

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

Bottom Line

UHS scores higher overall (76/100 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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Universal Health Services Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.

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