Financial Review: Chemed (NYSE:CHE) versus AdaptHealth (NYSE:AHCO)

Chemed (NYSE:CHE) and AdaptHealth (NASDAQ:AHCO) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Valuation and Earnings

This table compares Chemed and AdaptHealth’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemed $1.94 billion 4.03 $219.92 million $13.95 35.17
AdaptHealth $529.64 million 3.67 -$15.00 million $0.30 76.77

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

Analyst Ratings

This is a summary of current ratings and price targets for Chemed and AdaptHealth, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemed 0 0 3 0 3.00
AdaptHealth 0 0 6 0 3.00

Chemed presently has a consensus price target of $520.00, indicating a potential upside of 5.99%. AdaptHealth has a consensus price target of $24.33, indicating a potential upside of 5.66%. Given Chemed’s higher probable upside, equities research analysts clearly believe Chemed is more favorable than AdaptHealth.

Volatility and Risk

Chemed has a beta of 0.66, indicating that its share price is 34% 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Chemed 12.99% 36.71% 20.52%
AdaptHealth N/A -42.67% 1.17%

Insider and Institutional Ownership

90.6% of Chemed shares are held by institutional investors. Comparatively, 12.4% of AdaptHealth shares are held by institutional investors. 4.0% of Chemed shares are held by company insiders. Comparatively, 10.9% of AdaptHealth shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Chemed beats AdaptHealth on 10 of the 13 factors compared between the two stocks.

Chemed Company Profile

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers in the United States. It operates through two segments, VITAS and Roto-Rooter. The company also offers plumbing, drain cleaning, water restoration, and other related services to residential and commercial customers through company-owned and independent contractors, and franchised locations. Chemed Corporation was founded in 1970 and is headquartered in Cincinnati, Ohio.

AdaptHealth Company Profile

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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