Chemed (CHE) versus Its Competitors Head-To-Head Review

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

Insider and Institutional 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

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

Volatility and Risk

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

Profitability

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

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 raised its dividend for 16 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Chemed and its peers, as reported by MarketBeat.

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

Summary

Chemed peers beat Chemed on 9 of the 15 factors compared.

Chemed Company Profile

(Get Free Report)

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.