Chemed (NYSE: CHE) and BioTelemetry (NASDAQ:BEAT) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.4%. BioTelemetry does not pay a dividend. Chemed pays out 19.3% of its earnings in the form of a dividend. Chemed has increased its dividend for 9 consecutive years.
This table compares Chemed and BioTelemetry’s net margins, return on equity and return on assets.
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This is a breakdown of current ratings for Chemed and BioTelemetry, as reported by MarketBeat.
||Strong Buy Ratings
Chemed currently has a consensus price target of $266.50, suggesting a potential downside of 5.32%. BioTelemetry has a consensus price target of $43.67, suggesting a potential upside of 30.54%. Given BioTelemetry’s stronger consensus rating and higher probable upside, analysts plainly believe BioTelemetry is more favorable than Chemed.
Volatility and Risk
Chemed has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, BioTelemetry has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
Insider and Institutional Ownership
94.6% of Chemed shares are owned by institutional investors. Comparatively, 87.5% of BioTelemetry shares are owned by institutional investors. 4.9% of Chemed shares are owned by insiders. Comparatively, 9.6% of BioTelemetry shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Chemed and BioTelemetry’s revenue, earnings per share and valuation.
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Chemed has higher revenue and earnings than BioTelemetry. BioTelemetry is trading at a lower price-to-earnings ratio than Chemed, indicating that it is currently the more affordable of the two stocks.
Chemed beats BioTelemetry on 11 of the 17 factors compared between the two stocks.
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.
BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).
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