Analyzing Pacific Health Care Organization (OTCMKTS:PFHO) and GeneDx (NASDAQ:WGS)

GeneDx (NASDAQ:WGS) and Pacific Health Care Organization (OTCMKTS:PFHO) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Valuation & Earnings

This table compares GeneDx and Pacific Health Care Organization”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$402.19 million	10.19	-$52.29 million	$0.09	1,584.67
Pacific Health Care Organization	$6.07 million	2.85	$880,000.00	$0.11	12.27

Pacific Health Care Organization has lower revenue, but higher earnings than GeneDx. Pacific Health Care Organization is trading at a lower price-to-earnings ratio than GeneDx, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GeneDx and Pacific Health Care Organization, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneDx	1	3	7	0	2.55
Pacific Health Care Organization	0	0	0	0	0.00

GeneDx presently has a consensus price target of $129.22, suggesting a potential downside of 9.39%. Given GeneDx’s stronger consensus rating and higher possible upside, equities research analysts clearly believe GeneDx is more favorable than Pacific Health Care Organization.

Profitability

This table compares GeneDx and Pacific Health Care Organization’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeneDx	0.52%	20.22%	11.89%
Pacific Health Care Organization	21.71%	11.80%	11.21%

Volatility & Risk

GeneDx has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Pacific Health Care Organization has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Institutional & Insider Ownership

61.7% of GeneDx shares are held by institutional investors. 29.6% of GeneDx shares are held by company insiders. Comparatively, 61.6% of Pacific Health Care Organization shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

GeneDx beats Pacific Health Care Organization on 10 of the 14 factors compared between the two stocks.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.