Chemed (CHE) vs. LHC Group (LHCG) Head-To-Head Analysis

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

Profitability

How to Become a New Pot Stock Millionaire

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

Net Margins Return on Equity Return on Assets
LHC Group 4.67% 9.18% 5.94%
Chemed 5.89% 30.04% 16.40%

Analyst Recommendations

This is a breakdown of current ratings and price targets for LHC Group and Chemed, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LHC Group 0 1 9 0 2.90
Chemed 0 2 1 0 2.33

LHC Group currently has a consensus target price of $77.56, indicating a potential upside of 9.81%. Chemed has a consensus target price of $266.50, indicating a potential downside of 6.18%. Given LHC Group’s stronger consensus rating and higher possible upside, analysts clearly believe LHC Group is more favorable than Chemed.

Dividends

Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.4%. LHC Group does not pay a dividend. Chemed pays out 20.9% of its earnings in the form of a dividend. Chemed has raised its dividend for 9 consecutive years.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LHC Group $1.07 billion 1.20 $50.11 million $2.42 29.19
Chemed $1.67 billion 2.75 $98.17 million $5.36 53.00

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

Risk and Volatility

LHC Group has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Chemed has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

89.9% of LHC Group shares are owned by institutional investors. Comparatively, 94.8% of Chemed shares are owned by institutional investors. 14.8% of LHC Group shares are owned by insiders. Comparatively, 4.9% of Chemed shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Chemed beats LHC Group on 12 of the 17 factors compared between the two stocks.

LHC Group Company Profile

LHC Group, Inc. is a holding company. The Company provides post-acute healthcare services to patients through its home nursing agencies, hospice agencies, community-based services agencies and long-term acute care hospitals (LTACHs). The Company operates through four segments: home health services, hospice services, community-based services and facility-based services. Through its home health services segment, the Company offers a range of services, including skilled nursing, medically oriented social services, and physical, occupational and speech therapy. Through its hospice services segment, the Company offers a range of services, including pain and symptom management, and emotional and spiritual support. Its community-based service operations offer a range of services to patients in their home or in a medical facility. The services range from assistance with grooming, medication reminders and meal preparation. It provides facility-based services principally through its LTACHs.

Chemed Company Profile

Chemed Corporation purchases, operates and divests subsidiaries engaged in various business activities. The Company operates through two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. VITAS is the provider of hospice services in an industry dominated primarily by small, non-profit, community-based hospices. VITAS provides hospice care to Medicare beneficiaries participating in these managed care programs. A portion of its VITAS business is operated in the state of Florida. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers.

Receive News & Ratings for LHC Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LHC Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply