Comparing Chemed (NYSE:CHE) and RadNet (NASDAQ:RDNT)

RadNet (NASDAQ:RDNT) and Chemed (NYSE:CHE) are both mid-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.78%	2.41%	0.82%
Chemed	11.56%	25.83%	17.77%

Earnings & Valuation

This table compares RadNet and Chemed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$1.91 billion	3.36	$2.79 million	($0.20)	-417.05
Chemed	$2.51 billion	2.53	$302.00 million	$19.45	22.41

Chemed has higher revenue and earnings than RadNet. RadNet is trading at a lower price-to-earnings ratio than Chemed, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

RadNet has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Chemed has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for RadNet and Chemed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	1	0	4	3	3.13
Chemed	0	1	4	0	2.80

RadNet presently has a consensus target price of $76.80, suggesting a potential downside of 7.92%. Chemed has a consensus target price of $578.50, suggesting a potential upside of 32.75%. Given Chemed’s higher probable upside, analysts clearly believe Chemed is more favorable than RadNet.

Institutional and Insider Ownership

77.9% of RadNet shares are held by institutional investors. Comparatively, 95.8% of Chemed shares are held by institutional investors. 5.6% of RadNet shares are held by company insiders. Comparatively, 3.3% of Chemed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Chemed beats RadNet on 9 of the 14 factors compared between the two stocks.

About RadNet

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

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.