Chemed Corp. (NYSE: CHE) and Almost Family (NASDAQ:AFAM) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Chemed Corp. pays an annual dividend of $1.04 per share and has a dividend yield of 0.5%. Almost Family does not pay a dividend. Chemed Corp. pays out 15.2% of its earnings in the form of a dividend. Chemed Corp. has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Chemed Corp. and Almost Family, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemed Corp. 0 2 1 0 2.33
Almost Family 0 1 3 0 2.75

Chemed Corp. presently has a consensus price target of $151.50, suggesting a potential downside of 26.73%. Almost Family has a consensus price target of $58.25, suggesting a potential downside of 4.43%. Given Almost Family’s stronger consensus rating and higher probable upside, analysts plainly believe Almost Family is more favorable than Chemed Corp..

Risk and Volatility

Chemed Corp. has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Almost Family has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Chemed Corp. and Almost Family’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemed Corp. 7.14% 24.62% 14.04%
Almost Family 2.59% 7.67% 4.37%

Valuation and Earnings

This table compares Chemed Corp. and Almost Family’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chemed Corp. $1.59 billion 2.09 $217.50 million $6.82 30.32
Almost Family $671.16 million 1.15 $41.65 million $1.61 37.86

Chemed Corp. has higher revenue and earnings than Almost Family. Chemed Corp. is trading at a lower price-to-earnings ratio than Almost Family, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.9% of Chemed Corp. shares are owned by institutional investors. Comparatively, 82.8% of Almost Family shares are owned by institutional investors. 5.3% of Chemed Corp. shares are owned by company insiders. Comparatively, 13.1% of Almost Family shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Chemed Corp. beats Almost Family on 12 of the 17 factors compared between the two stocks.

Chemed Corp. 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.

Almost Family Company Profile

Almost Family, Inc. is a provider of home healthcare services. The Company has two divisions: Home Health and Healthcare Innovations (HCI). The Home Health division consists of two segments: Visiting Nurse Services (VN or Visiting Nurse) and Personal Care Services (PC or Personal Care). The VN segment provides a range of Medicare-certified home health nursing services to patients in need of recuperative care, following a period of hospitalization or care in another type of inpatient facility. The PC segment provides services in patients’ homes primarily on an as-needed, hourly basis. These services include personal care, medication management, meal preparation, caregiver respite and homemaking. The HCI segment includes its developmental activity outside of the home health business platform. HCI activities include technology, information, population health management, risk-sharing, enhanced patient engagement and informed clinical decision making.

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