Chemed (CHE) & Acadia Healthcare (ACHC) Head to Head Survey

Acadia Healthcare (NASDAQ: ACHC) and Chemed (NYSE:CHE) are both mid-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Valuation & Earnings

This table compares Acadia Healthcare and Chemed’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acadia Healthcare $2.85 billion 0.99 $6.14 million $1.96 16.45
Chemed $1.58 billion 2.46 $108.74 million $4.49 53.99

Chemed has lower revenue, but higher earnings 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.

Dividends

Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.5%. Acadia Healthcare does not pay a dividend. Chemed pays out 24.9% of its earnings in the form of a dividend. Acadia Healthcare has increased its dividend for 8 consecutive years.

Institutional & Insider Ownership

97.7% of Chemed shares are held by institutional investors. 11.1% of Acadia Healthcare shares are held by insiders. Comparatively, 4.9% of Chemed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Acadia Healthcare and Chemed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acadia Healthcare 6.07% 8.57% 3.22%
Chemed 4.62% 27.69% 15.16%

Risk & Volatility

Acadia Healthcare has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Chemed has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Acadia Healthcare and Chemed, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadia Healthcare 0 6 8 0 2.57
Chemed 0 2 1 0 2.33

Acadia Healthcare presently has a consensus target price of $43.83, suggesting a potential upside of 35.92%. Chemed has a consensus target price of $228.50, suggesting a potential downside of 5.74%. Given Acadia Healthcare’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Acadia Healthcare is more favorable than Chemed.

Summary

Chemed beats Acadia Healthcare on 9 of the 17 factors compared between the two stocks.

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.

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.

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