Analyzing AdaptHealth (NASDAQ:AHCO) & CorVel (NASDAQ:CRVL)
by Mitch Edgeman · The Markets DailyCorVel (NASDAQ:CRVL – Get Free Report) and AdaptHealth (NASDAQ:AHCO – Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Risk and Volatility
CorVel has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, AdaptHealth has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for CorVel and AdaptHealth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
| AdaptHealth | 1 | 1 | 7 | 0 | 2.67 |
AdaptHealth has a consensus price target of $10.14, suggesting a potential upside of 68.49%. Given AdaptHealth’s stronger consensus rating and higher possible upside, analysts plainly believe AdaptHealth is more favorable than CorVel.
Earnings & Valuation
This table compares CorVel and AdaptHealth”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CorVel | $958.53 million | 4.24 | $110.34 million | $2.25 | 35.42 |
| AdaptHealth | $3.24 billion | 0.25 | -$70.79 million | ($1.71) | -3.52 |
CorVel has higher earnings, but lower revenue than AdaptHealth. AdaptHealth is trading at a lower price-to-earnings ratio than CorVel, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
51.4% of CorVel shares are held by institutional investors. Comparatively, 82.7% of AdaptHealth shares are held by institutional investors. 39.7% of CorVel shares are held by company insiders. Comparatively, 1.9% of AdaptHealth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares CorVel and AdaptHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CorVel | 11.72% | 29.92% | 17.82% |
| AdaptHealth | -7.07% | 3.36% | 1.16% |
Summary
CorVel beats AdaptHealth on 8 of the 14 factors compared between the two stocks.
About CorVel
CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.
About AdaptHealth
AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.