AdaptHealth (NASDAQ:AHCO) vs. LHC Group (NASDAQ:LHCG) Critical Comparison

LHC Group (NASDAQ:LHCG) and AdaptHealth (NASDAQ:AHCO) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares LHC Group and AdaptHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LHC Group 5.76% 9.08% 6.24%
AdaptHealth N/A -42.67% 1.17%

Volatility and Risk

LHC Group has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, AdaptHealth has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.

Institutional and Insider Ownership

12.4% of AdaptHealth shares are held by institutional investors. 4.8% of LHC Group shares are held by insiders. Comparatively, 10.9% of AdaptHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares LHC Group and AdaptHealth’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LHC Group $2.08 billion 3.13 $95.73 million $4.47 46.04
AdaptHealth $529.64 million 3.80 -$15.00 million $0.30 79.60

LHC Group has higher revenue and earnings than AdaptHealth. LHC Group is trading at a lower price-to-earnings ratio than AdaptHealth, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for LHC Group and AdaptHealth, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LHC Group 0 2 6 0 2.75
AdaptHealth 0 0 6 0 3.00

LHC Group currently has a consensus price target of $191.43, indicating a potential downside of 6.99%. AdaptHealth has a consensus price target of $24.33, indicating a potential upside of 1.90%. Given AdaptHealth’s stronger consensus rating and higher probable upside, analysts plainly believe AdaptHealth is more favorable than LHC Group.

Summary

LHC Group beats AdaptHealth on 7 of the 13 factors compared between the two stocks.

About LHC Group

LHC Group, Inc. provides post-acute health care services to patients through its home nursing agencies, hospices and long-term acute care hospitals. The company operates through the following business segments: Home Health Services, Hospice Services, Home & Community-Based Services, Facility-Based Services and Healthcare Innovations. The Home Health segment offers a wide range of services, including skilled nursing, private duty nursing, physical, occupational and speech therapy, medically-oriented social services and hospice care. The Hospice Services segment offer a wide range of services, including pain and symptom management, emotional and spiritual support, inpatient and respite care, homemaker services, and counseling. The Home & Community-Based Services segment are performed by paraprofessional personnel, and include assistance to the elderly, chronically ill, and disabled patients with activities of daily living. The Facility Based Services segment includes long-term acute care hospitals treats patients with severe medical conditions who require a high-level of care and frequent monitoring by physicians and other clinical personnel by operating an institutional pharmacy, which focuses on providing a full array of services to long term acute care hospitals. The Healthcare Innovations segment reports on developmental activities outside its other business segments, which provides primary medical care for patients with chronic and acute illnesses who have difficulty traveling to a doctor’s office. LHC Group was founded by Keith G. Myers in September 1994 and is headquartered in Lafayette, LA.

About AdaptHealth

AdaptHealth, LLC distributes home medical equipment. The Company offers mobility products, respiratory therapy, non- invasive ventilation, nutrition supplies, ocean home health products, sleep therapy supplies, bed lifts, seat lift chairs, and bath aids. AdaptHealth, LLC was founded in 2012 and is based in Phoenixville, Pennsylvania.

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