Comparing Chemed (CHE) and The Competition
by Mitch Edgeman · The Markets DailyChemed (NYSE:CHE – Get Free Report) is one of 235 public companies in the “Healthcare Providers & Services” industry, but how does it contrast to its competitors? We will compare Chemed to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.
Earnings and Valuation
This table compares Chemed and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Chemed | $2.60 billion | $265.24 million | 25.76 |
| Chemed Competitors | $18.76 billion | $281.76 million | -0.38 |
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.
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 | 10.60% | 31.77% | 18.90% |
| Chemed Competitors | -7.68% | -139.71% | -1.48% |
Volatility & Risk
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 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.
Dividends
Chemed pays an annual dividend of $2.80 per share and has a dividend yield of 0.5%. Chemed pays out 14.1% of its earnings in the form of a dividend. As a group, “Healthcare Providers & Services” companies pay a dividend yield of 1.6% and pay out 27.2% 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 recent recommendations and price targets for Chemed and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chemed | 0 | 5 | 2 | 0 | 2.29 |
| Chemed Competitors | 1811 | 7598 | 13040 | 796 | 2.55 |
Chemed currently has a consensus price target of $554.60, indicating a potential upside of 8.14%. As a group, “Healthcare Providers & Services” companies have a potential upside of 15.72%. Given Chemed’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Chemed has less favorable growth aspects than its competitors.
Institutional & Insider Ownership
95.8% of Chemed shares are held by institutional investors. Comparatively, 57.0% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 3.3% of Chemed shares are held by insiders. Comparatively, 15.4% of shares of all “Healthcare Providers & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Chemed competitors beat Chemed on 9 of the 15 factors compared.
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.