Head-To-Head Survey: RadNet (NASDAQ:RDNT) & Chemed (NYSE:CHE)

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

Volatility and Risk

Chemed has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, RadNet has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chemed	10.61%	35.18%	19.43%
RadNet	-0.94%	3.14%	1.08%

Insider and Institutional Ownership

95.8% of Chemed shares are held by institutional investors. Comparatively, 77.9% of RadNet shares are held by institutional investors. 3.3% of Chemed shares are held by insiders. Comparatively, 5.1% of RadNet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Chemed and RadNet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemed	$2.53 billion	2.78	$265.24 million	$20.90	25.84
RadNet	$2.04 billion	3.05	-$18.65 million	($0.27)	-293.17

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.

Analyst Ratings

This is a summary of recent recommendations for Chemed and RadNet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemed	0	4	3	0	2.43
RadNet	1	1	6	1	2.78

Chemed presently has a consensus target price of $603.00, suggesting a potential upside of 11.65%. RadNet has a consensus target price of $90.43, suggesting a potential upside of 14.24%. Given RadNet’s stronger consensus rating and higher possible upside, analysts clearly believe RadNet is more favorable than Chemed.

Summary

Chemed beats RadNet on 8 of the 15 factors compared between the two stocks.

About Chemed

Chemed Corporation is a U.S.-based company operating through two principal businesses: VITAS Healthcare, which provides hospice and palliative care, and Roto-Rooter, which offers plumbing, drain-cleaning and water-restoration services. VITAS serves patients with serious illnesses through home-based care and services in hospice facilities and other care settings. Roto-Rooter serves residential and commercial customers with plumbing and drain services, as well as cleanup and restoration following water damage.

About RadNet

RadNet, Inc. operates outpatient diagnostic imaging centers in the United States. Its centers provide services including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), mammography, ultrasound, X-ray and nuclear medicine imaging. The company serves patients, physicians and healthcare organizations, with operations across several states, including California, Delaware, Florida, Maryland, New Jersey and New York. Its imaging centers offer diagnostic services for a range of medical needs, from routine screening to specialized examinations.