Pear Therapeutics (NASDAQ:PEAR) and The Pennant Group (NASDAQ:PNTG) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Pear Therapeutics and The Pennant Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pear Therapeutics | 0 | 0 | 4 | 0 | 3.00 |
| The Pennant Group | 0 | 1 | 2 | 0 | 2.67 |
Pear Therapeutics currently has a consensus target price of $12.00, indicating a potential upside of 186.40%. The Pennant Group has a consensus target price of $34.00, indicating a potential upside of 108.21%. Given Pear Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Pear Therapeutics is more favorable than The Pennant Group.
Profitability
This table compares Pear Therapeutics and The Pennant Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pear Therapeutics | N/A | N/A | N/A |
| The Pennant Group | 2.03% | 12.90% | 2.66% |
Earnings & Valuation
This table compares Pear Therapeutics and The Pennant Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pear Therapeutics | N/A | N/A | N/A | N/A | N/A |
| The Pennant Group | $390.95 million | 1.19 | $15.74 million | $0.29 | 56.31 |
The Pennant Group has higher revenue and earnings than Pear Therapeutics.
Institutional & Insider Ownership
88.7% of The Pennant Group shares are held by institutional investors. 10.3% of The Pennant Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
The Pennant Group beats Pear Therapeutics on 6 of the 9 factors compared between the two stocks.
About Pear Therapeutics
Pear Therapeutics Inc. is involved in developing and commercializing software-based medicines, called prescription digital therapeutics. The company’s principal pipeline of products include reset(R), for the treatment of substance use disorder, reSET-O(R), for the treatment of opioid use disorder and Somryst(R) for the treatment of chronic insomnia. Pear Therapeutics Inc., formerly known as Thimble Point Acquisition Corp., is based in BOSTON.
About The Pennant Group
The Pennant Group, Inc. provides healthcare services in Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. 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, and meals, as well as housekeeping and assistance in the activities of daily living to seniors, who are independent or who require some support. As of February 24, 2021, the company operated 80 home health and hospice agencies; and 54 senior living communities. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.
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