Comparing Chemed (CHE) & The Competition

Chemed (NYSE:CHE) is one of 233 public companies in the “Healthcare Providers & Services” industry, but how does it compare to its competitors? We will compare Chemed to related businesses based on the strength of its valuation, dividends, earnings, risk, analyst recommendations, institutional ownership and profitability.

Dividends

Chemed pays an annual dividend of $2.80 per share and has a dividend yield of 0.5%. Chemed pays out 13.4% of its earnings in the form of a dividend. As a group, “Healthcare Providers & Services” companies pay a dividend yield of 1.5% and pay out 27.0% of their earnings in the form of a dividend. Chemed has increased its dividend for 16 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Chemed and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemed	0	4	3	0	2.43
Chemed Competitors	1848	7705	13262	815	2.55

Chemed currently has a consensus price target of $603.00, indicating a potential upside of 11.23%. As a group, “Healthcare Providers & Services” companies have a potential upside of 16.05%. Given Chemed’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Chemed has less favorable growth aspects than its competitors.

Profitability

This table compares Chemed and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemed	10.61%	35.18%	19.43%
Chemed Competitors	-7.80%	-141.18%	-1.53%

Valuation & Earnings

This table compares Chemed and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Chemed	$2.66 billion	$265.24 million	25.94
Chemed Competitors	$19.10 billion	$288.48 million	7.14

Chemed’s competitors have higher revenue and earnings than Chemed. Chemed is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Chemed has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Chemed’s competitors have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

95.8% of Chemed shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 3.3% of Chemed shares are owned by company insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned 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 competitors beat Chemed on 9 of the 15 factors compared.

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 primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.