Chemed (NYSE: CHE) and Acadia Healthcare (NASDAQ:ACHC) are both mid-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
This is a summary of recent ratings and target prices for Chemed and Acadia Healthcare, as reported by MarketBeat.
||Strong Buy Ratings
Chemed presently has a consensus price target of $228.50, suggesting a potential downside of 14.24%. Acadia Healthcare has a consensus price target of $42.73, suggesting a potential upside of 25.63%. Given Acadia Healthcare’s stronger consensus rating and higher possible upside, analysts clearly believe Acadia Healthcare is more favorable than Chemed.
Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.4%. Acadia Healthcare does not pay a dividend. Chemed pays out 24.9% of its earnings in the form of a dividend. Acadia Healthcare has raised its dividend for 9 consecutive years.
This table compares Chemed and Acadia Healthcare’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation & Earnings
This table compares Chemed and Acadia Healthcare’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Chemed has higher earnings, but lower revenue than Acadia Healthcare. Acadia Healthcare is trading at a lower price-to-earnings ratio than Chemed, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
97.7% of Chemed shares are held by institutional investors. 4.9% of Chemed shares are held by insiders. Comparatively, 11.1% of Acadia Healthcare shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Chemed has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Chemed beats Acadia Healthcare on 9 of the 17 factors compared between the two stocks.
Chemed Company Profile
Chemed Corporation purchases, operates and divests subsidiaries engaged in various business activities. The Company operates through two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. VITAS is the provider of hospice services in an industry dominated primarily by small, non-profit, community-based hospices. VITAS provides hospice care to Medicare beneficiaries participating in these managed care programs. A portion of its VITAS business is operated in the state of Florida. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers.
Acadia Healthcare Company Profile
Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.
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