Analyzing Chemed Corp. (CHE) & TeamHealth Holdings (TMH)
Chemed Corp. (NYSE: CHE) and TeamHealth Holdings (NYSE:TMH) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
Insider & Institutional Ownership
97.0% of Chemed Corp. shares are owned by institutional investors. 5.3% of Chemed Corp. shares are owned by insiders. Comparatively, 1.3% of TeamHealth Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Chemed Corp. and TeamHealth Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Chemed Corp. pays an annual dividend of $1.12 per share and has a dividend yield of 0.6%. TeamHealth Holdings does not pay a dividend. Chemed Corp. pays out 28.1% of its earnings in the form of a dividend. Chemed Corp. has raised its dividend for 8 consecutive years.
Risk and Volatility
Chemed Corp. has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, TeamHealth Holdings has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Earnings and Valuation
This table compares Chemed Corp. and TeamHealth Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chemed Corp.||$1.62 billion||2.00||$226.52 million||$3.99||50.90|
Chemed Corp. has higher revenue and earnings than TeamHealth Holdings. Chemed Corp. is trading at a lower price-to-earnings ratio than TeamHealth Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Chemed Corp. and TeamHealth Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chemed Corp. currently has a consensus price target of $214.50, suggesting a potential upside of 5.61%. TeamHealth Holdings has a consensus price target of $43.40, suggesting a potential downside of 0.23%. Given Chemed Corp.’s stronger consensus rating and higher possible upside, equities analysts clearly believe Chemed Corp. is more favorable than TeamHealth Holdings.
Chemed Corp. beats TeamHealth Holdings on 13 of the 14 factors compared between the two stocks.
About Chemed Corp.
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.
About TeamHealth Holdings
Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.
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