Head to Head Analysis: Kindly MD (NASDAQ:KDLY) versus The Pennant Group (NASDAQ:PNTG)

The Pennant Group (NASDAQ:PNTG) and Kindly MD (NASDAQ:KDLY) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for The Pennant Group and Kindly MD, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Pennant Group	0	2	3	0	2.60
Kindly MD	0	0	0	0	0.00

The Pennant Group presently has a consensus target price of $34.80, suggesting a potential upside of 33.85%. Given The Pennant Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe The Pennant Group is more favorable than Kindly MD.

Profitability

This table compares The Pennant Group and Kindly MD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Pennant Group	3.24%	13.47%	3.81%
Kindly MD	N/A	N/A	N/A

Valuation and Earnings

This table compares The Pennant Group and Kindly MD”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Pennant Group	$695.24 million	1.30	$13.38 million	$0.70	37.14
Kindly MD	$2.72 million	3.77	-$3.98 million	($0.66)	-2.58

The Pennant Group has higher revenue and earnings than Kindly MD. Kindly MD 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.

Insider & Institutional Ownership

85.9% of The Pennant Group shares are held by institutional investors. 5.8% of The Pennant Group shares are held by insiders. Comparatively, 50.5% of Kindly MD shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

The Pennant Group beats Kindly MD on 11 of the 13 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 Kindly MD

Kindly MD, Inc. provides healthcare services. Its services include medication management, behavioral healthcare and alternative treatments. The firm offers evaluation and management, including chronic pain, functional medicine, cognitive behavioral therapy, trauma and addiction therapy, recovery support services, overdose education efforts, peer support, limited urgent care, preventative medicine, travel services, and hormone therapy. The company was founded by Timothy Pickett in December 2019 and is headquartered in Murray, UT.