The Pennant Group (NASDAQ:PNTG – Get Free Report) and Ontrak (NASDAQ:OTRK – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.
Analyst Recommendations
This is a summary of recent ratings and price targets for The Pennant Group and Ontrak, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Pennant Group | 0 | 2 | 3 | 0 | 2.60 |
| Ontrak | 0 | 0 | 1 | 0 | 3.00 |
The Pennant Group currently has a consensus price target of $34.60, indicating a potential upside of 24.55%. Ontrak has a consensus price target of $45.00, indicating a potential upside of 3,160.87%. Given Ontrak’s stronger consensus rating and higher possible upside, analysts clearly believe Ontrak is more favorable than The Pennant Group.
Risk & Volatility
Earnings and Valuation
This table compares The Pennant Group and Ontrak”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Pennant Group | $695.24 million | 1.38 | $22.56 million | $0.76 | 36.55 |
| Ontrak | $10.85 million | 0.54 | -$25.49 million | ($15.81) | -0.09 |
The Pennant Group has higher revenue and earnings than Ontrak. Ontrak 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.
Profitability
This table compares The Pennant Group and Ontrak’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Pennant Group | 3.40% | 10.73% | 4.00% |
| Ontrak | -274.20% | -269.88% | -128.35% |
Insider & Institutional Ownership
85.9% of The Pennant Group shares are owned by institutional investors. Comparatively, 13.0% of Ontrak shares are owned by institutional investors. 5.4% of The Pennant Group shares are owned by company insiders. Comparatively, 1.9% of Ontrak shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
The Pennant Group beats Ontrak 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 Ontrak
Ontrak, Inc. operates as an artificial intelligence powered, telehealth-enabled, and virtualized healthcare company that provides in-person services to third-party payors in the United States. Its technology-enabled platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages and guides them to and through the care they need. The company's technology enabled OnTrak program provides healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions, such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. The OnTrak integrates evidence-based psychosocial and medical interventions delivered in-person or via telehealth along with care coaching and in-market community care coordinators, who address the social and environmental determinants of health. The company was formerly known as Catasys, Inc. and changed its name to Ontrak, Inc. in July 2020. Ontrak, Inc. was incorporated in 2003 and is headquartered in Miami, Florida.
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