Comprehensive Stock Comparison
Compare The Pennant Group, Inc. (PNTG) vs HCA Healthcare, Inc. (HCA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | PNTG | 36.3% revenue growth vs HCA's 7.1% |
| Value | HCA | Lower P/E (17.5x vs 25.8x), PEG 0.83 vs 2.57 |
| Quality / Margins | HCA | 9.0% net margin vs PNTG's 3.1% |
| Stability / Safety | HCA | Beta 0.29 vs PNTG's 0.54 |
| Dividends | HCA | 0.6% yield; 5-year raise streak; PNTG pays no meaningful dividend |
| Momentum (1Y) | HCA | +73.9% vs PNTG's +48.0% |
| Efficiency (ROA) | HCA | 11.2% ROA vs PNTG's 3.1%, ROIC 19.9% vs 5.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
The Pennant Group operates a network of home health, hospice, and senior living facilities across the United States. It generates revenue primarily from Medicare and Medicaid reimbursements for home health and hospice services—roughly 70% of total revenue—with the remainder coming from private pay and insurance for senior living communities. The company's decentralized operating model—which grants local leaders significant autonomy—creates a competitive advantage through better community integration and operational efficiency compared to more centralized healthcare providers.
HCA Healthcare is one of the largest for-profit hospital operators in the United States, providing comprehensive medical and surgical services through its network of acute care hospitals and outpatient facilities. It generates revenue primarily from patient services — including inpatient hospital stays, outpatient procedures, and emergency care — with the vast majority coming from government programs like Medicare and Medicaid alongside private insurance reimbursements. The company's scale advantage — operating over 180 hospitals concentrated in high-growth markets — creates significant purchasing power with suppliers and negotiating leverage with payers.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HCA leads in 4 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 2 categories are tied.
Financial Metrics (TTM)
HCA is the larger business by revenue, generating $75.6B annually — 79.8x PNTG's $948M. HCA is the more profitable business, keeping 9.0% of every revenue dollar as net income compared to PNTG's 3.1%. On growth, PNTG holds the edge at +53.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PNTGThe Pennant Group… | HCAHCA Healthcare, I… |
|---|---|---|
| RevenueTrailing 12 months | $948M | $75.6B |
| EBITDAEarnings before interest/tax | $60M | $15.5B |
| Net IncomeAfter-tax profit | $30M | $6.8B |
| Free Cash FlowCash after capex | $33M | $7.7B |
| Gross MarginGross profit ÷ Revenue | +11.2% | +41.5% |
| Operating MarginEBIT ÷ Revenue | +5.5% | +15.8% |
| Net MarginNet income ÷ Revenue | +3.1% | +9.0% |
| FCF MarginFCF ÷ Revenue | +3.5% | +10.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +53.2% | +6.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +50.0% | +44.6% |
Valuation Metrics
At 18.7x trailing earnings, HCA trades at a 53% valuation discount to PNTG's 40.1x P/E. Adjusting for growth (PEG ratio), HCA offers better value at 0.89x vs PNTG's 3.99x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | PNTGThe Pennant Group… | HCAHCA Healthcare, I… |
|---|---|---|
| Market CapShares × price | $1.2B | $118.5B |
| Enterprise ValueMkt cap + debt − cash | $1.6B | $167.6B |
| Trailing P/EPrice ÷ TTM EPS | 40.13x | 18.66x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.82x | 17.50x |
| PEG RatioP/E ÷ EPS growth rate | 3.99x | 0.89x |
| EV / EBITDAEnterprise value multiple | 26.68x | 10.82x |
| Price / SalesMarket cap ÷ Revenue | 1.24x | 1.57x |
| Price / BookPrice ÷ Book value/share | 3.18x | — |
| Price / FCFMarket cap ÷ FCF | 24.35x | 15.40x |
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), HCA scores 7/9 vs PNTG's 3/9, reflecting strong financial health.
| Metric | PNTGThe Pennant Group… | HCAHCA Healthcare, I… |
|---|---|---|
| ROE (TTM)Return on equity | +7.9% | — |
| ROA (TTM)Return on assets | +3.1% | +11.2% |
| ROICReturn on invested capital | +5.7% | +19.9% |
| ROCEReturn on capital employed | +7.4% | +27.0% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 7 |
| Debt / EquityFinancial leverage | 1.21x | — |
| Net DebtTotal debt minus cash | $436M | $49.2B |
| Cash & Equiv.Liquid assets | $17M | $1.0B |
| Total DebtShort + long-term debt | $453M | $50.2B |
| Interest CoverageEBIT ÷ Interest expense | 202.23x | 5.37x |
Total Returns (with DRIP)
A $10,000 investment in HCA five years ago would be worth $30,878 today (with dividends reinvested), compared to $6,436 for PNTG. Over the past 12 months, HCA leads with a +73.9% total return vs PNTG's +48.0%. The 3-year compound annual growth rate (CAGR) favors PNTG at 30.9% vs HCA's 30.2% — a key indicator of consistent wealth creation.
| Metric | PNTGThe Pennant Group… | HCAHCA Healthcare, I… |
|---|---|---|
| YTD ReturnYear-to-date | +21.1% | +12.6% |
| 1-Year ReturnPast 12 months | +48.0% | +73.9% |
| 3-Year ReturnCumulative with dividends | +124.4% | +120.8% |
| 5-Year ReturnCumulative with dividends | -35.6% | +208.8% |
| 10-Year ReturnCumulative with dividends | +123.4% | +688.3% |
| CAGR (3Y)Annualised 3-year return | +30.9% | +30.2% |
Risk & Volatility
HCA is the less volatile stock with a 0.29 beta — it tends to amplify market swings less than PNTG's 0.54 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | PNTGThe Pennant Group… | HCAHCA Healthcare, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.54x | 0.29x |
| 52-Week HighHighest price in past year | $35.00 | $552.90 |
| 52-Week LowLowest price in past year | $21.18 | $295.00 |
| % of 52W HighCurrent price vs 52-week peak | +96.3% | +95.8% |
| RSI (14)Momentum oscillator 0–100 | 48.3 | 56.0 |
| Avg Volume (50D)Average daily shares traded | 226K | 879K |
Analyst Outlook
Wall Street rates PNTG as "Buy" and HCA as "Buy". Consensus price targets imply 15.7% upside for PNTG (target: $39) vs -1.1% for HCA (target: $524). HCA is the only dividend payer here at 0.56% yield — a key consideration for income-focused portfolios.
| Metric | PNTGThe Pennant Group… | HCAHCA Healthcare, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $39.00 | $523.92 |
| # AnalystsCovering analysts | 7 | 46 |
| Dividend YieldAnnual dividend ÷ price | — | +0.6% |
| Dividend StreakConsecutive years of raises | 1 | 5 |
| Dividend / ShareAnnual DPS | — | $2.94 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +8.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| The Pennant Group, … (PNTG) | 100 | 104.89 | +4.9% |
| HCA Healthcare, Inc. (HCA) | 100 | 367.9 | +267.9% |
HCA Healthcare, Inc. (HCA) returned +209% over 5 years vs The Pennant Group, … (PNTG)'s -36%. A $10,000 investment in HCA 5 years ago would be worth $30,878 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Pennant Group, … (PNTG) | $251M | $948M | +277.6% |
| HCA Healthcare, Inc. (HCA) | $41.5B | $75.6B | +82.2% |
HCA Healthcare, Inc.'s revenue grew from $41.5B (2016) to $75.6B (2025) — a 6.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Pennant Group, … (PNTG) | 3.9% | 3.1% | -20.6% |
| HCA Healthcare, Inc. (HCA) | 7.0% | 9.0% | +28.8% |
HCA Healthcare, Inc.'s net margin went from 7% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| The Pennant Group, … (PNTG) | 384.5 | 33.5 | -91.3% |
| HCA Healthcare, Inc. (HCA) | 14.8 | 16.5 | +11.5% |
The Pennant Group, Inc. has traded in a 32x–385x P/E range over 7 years; current trailing P/E is ~40x. HCA Healthcare, Inc. has traded in a 12x–17x P/E range over 9 years; current trailing P/E is ~19x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Pennant Group, … (PNTG) | 0.35 | 0.84 | +140.0% |
| HCA Healthcare, Inc. (HCA) | 7.3 | 28.38 | +288.8% |
HCA Healthcare, Inc.'s EPS grew from $7.30 (2016) to $28.38 (2025) — a 16% CAGR.
Chart 6Free Cash Flow — 5 Years
The Pennant Group, Inc. generated $48M FCF in 2025 (+297% vs 2021). HCA Healthcare, Inc. generated $8B FCF in 2025 (+43% vs 2021).
PNTG vs HCA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PNTG or HCA a better buy right now?
HCA Healthcare, Inc. (HCA) offers the better valuation at 18.7x trailing P/E (17.5x forward), making it the more compelling value choice. Analysts rate The Pennant Group, Inc. (PNTG) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — PNTG or HCA?
On trailing P/E, HCA Healthcare, Inc. (HCA) is the cheapest at 18.7x versus The Pennant Group, Inc. at 40.1x. On forward P/E, HCA Healthcare, Inc. is actually cheaper at 17.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: HCA Healthcare, Inc. wins at 0.83x versus The Pennant Group, Inc.'s 2.57x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — PNTG or HCA?
Over the past 5 years, HCA Healthcare, Inc. (HCA) delivered a total return of +208.8%, compared to -35.6% for The Pennant Group, Inc. (PNTG). A $10,000 investment in HCA five years ago would be worth approximately $31K today (assuming dividends reinvested). Over 10 years, the gap is even starker: HCA returned +688.3% versus PNTG's +123.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — PNTG or HCA?
By beta (market sensitivity over 5 years), HCA Healthcare, Inc. (HCA) is the lower-risk stock at 0.29β versus The Pennant Group, Inc.'s 0.54β — meaning PNTG is approximately 85% more volatile than HCA relative to the S&P 500.
05Which has better profit margins — PNTG or HCA?
HCA Healthcare, Inc. (HCA) is the more profitable company, earning 9.0% net margin versus 3.1% for The Pennant Group, Inc. — meaning it keeps 9.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCA leads at 15.8% versus 5.5% for PNTG. At the gross margin level — before operating expenses — HCA leads at 41.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is PNTG or HCA more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, HCA Healthcare, Inc. (HCA) is the more undervalued stock at a PEG of 0.83x versus The Pennant Group, Inc.'s 2.57x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, HCA Healthcare, Inc. (HCA) trades at 17.5x forward P/E versus 25.8x for The Pennant Group, Inc. — 8.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PNTG: 15.7% to $39.00.
07Which pays a better dividend — PNTG or HCA?
In this comparison, HCA (0.6% yield) pays a dividend. PNTG does not pay a meaningful dividend and should not be held primarily for income.
08Is PNTG or HCA better for a retirement portfolio?
For long-horizon retirement investors, HCA Healthcare, Inc. (HCA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.29), 0.6% yield, +688.3% 10Y return). Both have compounded well over 10 years (HCA: +688.3%, PNTG: +123.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between PNTG and HCA?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. HCA pays a dividend while PNTG does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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