PNTG vs SGRY

For growth investors, The Pennant Group, Inc.

(PNTG) is the stronger pick with 36. 3% revenue growth year-over-year, versus 6. 2% for Surgery Partners, Inc. (SGRY). The Pennant Group, Inc. (PNTG) offers the better valuation at 38. 7x trailing P/E (24. 6x 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.

On forward P/E, The Pennant Group, Inc.

is actually cheaper at 24. 6x.

Over the past 5 years, The Pennant Group, Inc.

(PNTG) delivered a total return of -17. 2%, compared to -71. 9% for Surgery Partners, Inc. (SGRY). Over 10 years, the gap is even starker: PNTG returned +115. 6% versus SGRY's +4. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Pennant Group, Inc.

(PNTG) is the lower-risk stock at 0. 79β versus Surgery Partners, Inc. 's 1. 04β — meaning SGRY is approximately 31% more volatile than PNTG relative to the S&P 500. On balance sheet safety, Surgery Partners, Inc. (SGRY) carries a lower debt/equity ratio of 114% versus 121% for The Pennant Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Pennant Group, Inc.

(PNTG) is pulling ahead at 36. 3% versus 6. 2% for Surgery Partners, Inc. (SGRY). On earnings-per-share growth, the picture is similar: Surgery Partners, Inc. grew EPS 54. 1% year-over-year, compared to 18. 3% for The Pennant Group, Inc.. Over a 3-year CAGR, PNTG leads at 26. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Pennant Group, Inc.

(PNTG) is the more profitable company, earning 3. 1% net margin versus -2. 4% for Surgery Partners, Inc. — meaning it keeps 3. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SGRY leads at 11. 8% versus 5. 4% for PNTG. At the gross margin level — before operating expenses — SGRY leads at 23. 1%, 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.

On forward earnings alone, The Pennant Group, Inc.

(PNTG) trades at 24. 6x forward P/E versus 38. 7x for Surgery Partners, Inc. — 14. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SGRY: 27. 5% to $18. 60.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, The Pennant Group, Inc.

(PNTG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 79), +115. 6% 10Y return). Both have compounded well over 10 years (PNTG: +115. 6%, SGRY: +4. 9%), 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.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: PNTG is a small-cap high-growth stock; SGRY is a small-cap quality compounder stock. 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.