Reviewing CareRx (OTCMKTS:CHHHF) & Chemed (NYSE:CHE)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chemed and CareRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemed	0	0	2	0	3.00
CareRx	0	1	0	0	2.00

Chemed currently has a consensus target price of $681.00, suggesting a potential upside of 12.72%. Given Chemed’s stronger consensus rating and higher probable upside, analysts plainly believe Chemed is more favorable than CareRx.

Insider and Institutional Ownership

95.8% of Chemed shares are owned by institutional investors. 3.8% of Chemed shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chemed	12.03%	32.29%	20.74%
CareRx	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemed	$2.26 billion	4.03	$272.51 million	$17.92	33.71
CareRx	N/A	N/A	N/A	N/A	N/A

Chemed has higher revenue and earnings than CareRx.

Summary

Chemed beats CareRx on 9 of the 9 factors compared between the two stocks.

About Chemed

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.

About CareRx

CareRx Corporation, together with its subsidiaries, provides pharmacy services to seniors homes and other congregate care settings in Canada. The company offers medication management, technology, and program solutions. It serves long-term care homes, retirement homes, assisted living facilities, and group homes. The company was formerly known as Centric Health Corporation and changed its name to CareRx Corporation in June 2020. CareRx Corporation was incorporated in 2001 and is based in Toronto, Canada.