Addus HomeCare (NASDAQ:ADUS) vs. Henry Schein (NASDAQ:HSIC) Critical Contrast

Addus HomeCare (NASDAQ:ADUS) and Henry Schein (NASDAQ:HSIC) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Addus HomeCare has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Henry Schein has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Addus HomeCare and Henry Schein’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Addus HomeCare	7.39%	10.37%	8.02%
Henry Schein	3.07%	16.39%	5.58%

Analyst Recommendations

This is a breakdown of recent recommendations for Addus HomeCare and Henry Schein, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Addus HomeCare	1	4	4	1	2.50
Henry Schein	1	5	8	0	2.50

Addus HomeCare currently has a consensus price target of $130.25, suggesting a potential upside of 1.81%. Henry Schein has a consensus price target of $93.57, suggesting a potential upside of 6.04%. Given Henry Schein’s higher possible upside, analysts clearly believe Henry Schein is more favorable than Addus HomeCare.

Institutional & Insider Ownership

95.3% of Addus HomeCare shares are owned by institutional investors. Comparatively, 96.6% of Henry Schein shares are owned by institutional investors. 4.1% of Addus HomeCare shares are owned by insiders. Comparatively, 0.9% of Henry Schein shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Addus HomeCare and Henry Schein”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Addus HomeCare	$1.48 billion	1.62	$95.91 million	$6.00	21.32
Henry Schein	$13.73 billion	0.72	$398.00 million	$3.65	24.18

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

Summary

Henry Schein beats Addus HomeCare on 8 of the 14 factors compared between the two stocks.

About Addus HomeCare

Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. Addus HomeCare Corporation was founded in 1979 and is headquartered in Frisco, Texas.

About Henry Schein

Henry Schein, Inc. provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products, such as branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners; and value-added practice solutions comprising practice consultancy, education, revenue cycle management and financial services, e-services, practice technology, and network and hardware services, as well as consulting, and continuing education services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.