Analyzing Chemed (CHE) & Its Competitors

Chemed (NYSE:CHE) is one of 235 public companies in the “Healthcare Providers & Services” industry, but how does it contrast to its rivals? We will compare Chemed to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

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 1.5% and pay out 25.4% of their earnings in the form of a dividend. Chemed has increased its dividend for 16 consecutive years.

Institutional & Insider Ownership

95.8% of Chemed shares are held by institutional investors. Comparatively, 56.9% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 3.3% of Chemed shares are held by company insiders. Comparatively, 15.4% of shares of all “Healthcare Providers & Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Chemed and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Chemed	$2.53 billion	$265.24 million	26.16
Chemed Competitors	$20.60 billion	$281.57 million	1.50

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Chemed and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemed	0	5	1	0	2.17
Chemed Competitors	1792	7547	12969	788	2.55

Chemed currently has a consensus price target of $530.75, suggesting a potential upside of 1.91%. As a group, “Healthcare Providers & Services” companies have a potential upside of 14.45%. Given Chemed’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Chemed has less favorable growth aspects than its rivals.

Risk and Volatility

Chemed has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Chemed’s rivals have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Chemed and its rivals’ 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	-7.69%	-139.74%	-1.50%

Summary

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

Chemed Company Profile

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.