Pacific Health Care Organization (PFHO) vs. American Renal Associates (ARA) Financial Comparison

Pacific Health Care Organization (OTCMKTS:PFHO) and American Renal Associates (NYSE:ARA) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares Pacific Health Care Organization and American Renal Associates’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Health Care Organization 19.67% 17.91% 16.68%
American Renal Associates -1.81% 22.30% 2.41%

Risk & Volatility

Pacific Health Care Organization has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, American Renal Associates has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500.

Earnings and Valuation

This table compares Pacific Health Care Organization and American Renal Associates’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pacific Health Care Organization $6.51 million 2.36 $960,000.00 N/A N/A
American Renal Associates $745.11 million 0.70 $4.85 million $0.61 26.26

American Renal Associates has higher revenue and earnings than Pacific Health Care Organization.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pacific Health Care Organization and American Renal Associates, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Health Care Organization 0 0 0 0 N/A
American Renal Associates 0 1 3 0 2.75

American Renal Associates has a consensus price target of $22.75, suggesting a potential upside of 42.01%. Given American Renal Associates’ higher possible upside, analysts plainly believe American Renal Associates is more favorable than Pacific Health Care Organization.

Institutional & Insider Ownership

94.1% of American Renal Associates shares are owned by institutional investors. 61.0% of Pacific Health Care Organization shares are owned by company insiders. Comparatively, 9.6% of American Renal Associates shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

American Renal Associates beats Pacific Health Care Organization on 8 of the 12 factors compared between the two stocks.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., through its subsidiaries, provides specialty workers' compensation managed care services for self-administered employers, insurers, third party administrators, municipalities, and others in the United States. The company is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs); and negotiating legal agreements for the implementation of workers' compensation carve-outs for California client/employers with collective bargaining units. It also offers HCO and MPN programs; nurse case management services; and ancillary services, including utilization and medical bill review, lien representation, legal support, and Medicare set aside, network access fee services for workers' compensation claims. 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 Newport Beach, California.

About American Renal Associates

American Renal Associates Holdings, Inc. operates as a dialysis services provider in the United States. It operates dialysis clinics focusing on joint venture partnerships with physicians. The company offers kidney dialysis services to patients suffering from chronic kidney failure or end stage renal disease. As of June 30, 2018, it owned and operated 233 dialysis clinics in partnership with 400 nephrologist partners treating approximately 16,000 patients in 26 states and the District of Columbia. The company was founded in 1999 and is headquartered in Beverly, Massachusetts.

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