Financial Comparison: Civitas Solutions (CIVI) versus Chemed (CHE)

Civitas Solutions (NYSE: CIVI) and Chemed (NYSE:CHE) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Volatility & Risk

Civitas Solutions has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Chemed has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Civitas Solutions 0.23% 23.72% 3.67%
Chemed 6.67% 33.05% 17.97%

Insider and Institutional Ownership

91.5% of Civitas Solutions shares are held by institutional investors. Comparatively, 95.5% of Chemed shares are held by institutional investors. 5.3% of Civitas Solutions shares are held by insiders. Comparatively, 4.9% of Chemed shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Civitas Solutions and Chemed’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Civitas Solutions $1.47 billion 0.39 $6.33 million $0.71 21.83
Chemed $1.67 billion 3.14 $98.17 million $5.36 61.20

Chemed has higher revenue and earnings than Civitas Solutions. Civitas Solutions 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 breakdown of recent ratings and recommmendations for Civitas Solutions and Chemed, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Civitas Solutions 0 0 5 0 3.00
Chemed 0 2 1 0 2.33

Civitas Solutions currently has a consensus price target of $20.00, suggesting a potential upside of 29.03%. Chemed has a consensus price target of $266.50, suggesting a potential downside of 18.76%. Given Civitas Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Civitas Solutions is more favorable than Chemed.

Dividends

Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.3%. Civitas Solutions does not pay a dividend. Chemed pays out 20.9% of its earnings in the form of a dividend. Chemed has increased its dividend for 9 consecutive years.

Summary

Chemed beats Civitas Solutions on 12 of the 17 factors compared between the two stocks.

About Civitas Solutions

Civitas Solutions, Inc. provides home- and community-based health and human services to must-serve individuals with intellectual, developmental, behavioral, and/or medically complex disabilities and challenges in the United States. It operates through Intellectual and Developmental Disabilities (I/DD), Post-Acute Specialty Rehabilitation Services (SRS), and At-Risk Youth (ARY) segments. The I/DD segment offers services to adults and children with intellectual and developmental disabilities. Its programs include residential support, day habilitation, vocational, case management, crisis intervention, and hourly support care. The SRS segment delivers services to individuals who have suffered acquired brain injury, spinal injuries, and other catastrophic injuries and illnesses. This segment's services range from sub-acute healthcare for individuals with intensive medical needs to day treatment programs; and include neurorehabilitation, neurobehavioral rehabilitation, specialized nursing, physical, occupational and speech therapies, supported living, outpatient treatment, and pre-vocational services. The ARY segment offers services to youth with emotional, behavioral, and/or medically complex challenges. This segment's programs include therapeutic foster care, family preservation, adoption services, early intervention, school-based services, and juvenile offender programs. The company also delivers elder services, such as case and medication management, nursing oversight, nutrition, daily living assistance, therapeutic services, and transportation. The company serves state, local, and other government payors and non-public payors. As of September 30, 2017, it served approximately 11,800 clients in residential settings and 18,600 clients in non-residential settings in 36 states. The company was formerly known as NMH Holdings, Inc. The company was founded in 1980 and is based in Boston, Massachusetts. Civitas Solutions, Inc. is a subsidiary of Vestar Capital Partners.

About Chemed

Chemed Corporation provides hospice and palliative care services in the United States. It operates through two segments, VITAS and Roto-Rooter. The VITAS segment offers direct medical services, as well as spiritual and emotional counseling services to terminally ill patients. This segment offers its services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration, and other related services to residential and commercial customers through company-owned and operated territories, independent contractor-operated territories, and franchised locations. This segment also manufactures and sells products and equipment, including drain cleaning machines and drain cleaning solutions. The company was founded in 1970 and is headquartered in Cincinnati, Ohio.

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