Addus HomeCare (ADUS) and LHC Group (LHCG) Head to Head Survey

Addus HomeCare (NASDAQ: ADUS) and LHC Group (NASDAQ:LHCG) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Addus HomeCare and LHC Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Addus HomeCare 0 1 2 0 2.67
LHC Group 0 1 9 0 2.90

Addus HomeCare presently has a consensus price target of $48.00, indicating a potential downside of 9.43%. LHC Group has a consensus price target of $77.56, indicating a potential upside of 3.27%. Given LHC Group’s stronger consensus rating and higher probable upside, analysts clearly believe LHC Group is more favorable than Addus HomeCare.

Insider & Institutional Ownership

59.8% of Addus HomeCare shares are owned by institutional investors. Comparatively, 89.4% of LHC Group shares are owned by institutional investors. 35.8% of Addus HomeCare shares are owned by insiders. Comparatively, 14.8% of LHC Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Addus HomeCare and LHC Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Addus HomeCare 3.28% 10.04% 6.57%
LHC Group 4.07% 9.29% 5.97%

Valuation and Earnings

This table compares Addus HomeCare and LHC Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Addus HomeCare $425.71 million 1.46 $13.60 million $1.45 36.55
LHC Group $1.07 billion 1.28 $50.11 million $2.42 31.03

LHC Group has higher revenue and earnings than Addus HomeCare. LHC Group is trading at a lower price-to-earnings ratio than Addus HomeCare, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Addus HomeCare has a beta of -0.4, indicating that its share price is 140% less volatile than the S&P 500. Comparatively, LHC Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

LHC Group beats Addus HomeCare on 9 of the 14 factors compared between the two stocks.

Addus HomeCare Company Profile

Addus HomeCare Corporation provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company's personal care services offer assistance with activities of daily living. Its services include assistance with bathing, grooming, oral care, assistance with feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services, as well as other activities of daily living. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. As of December 31, 2017, the company served consumers through 116 offices located in 24 states. Addus HomeCare Corporation was founded in 1979 and is based in Frisco, Texas.

LHC Group Company Profile

LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States. The company operates through four segments: Home Health Services, Hospice Services, Community-Based Services, and Facility-Based Services. The Home Health Services segment offers home nursing services, including wound care and dressing changes, cardiac rehabilitation, infusion therapy, pain management, pharmaceutical administration, skilled observation and assessment, and patient education; medically-oriented social services; and physical, occupational, and speech therapy services. The Hospice Services segment provides pain and symptom management accompanied by palliative medication, emotional and spiritual support, inpatient and respite care, homemaker services, dietary counseling, family bereavement counseling, and social worker visits. The Community-Based Services segment offers a range of services, such as assistance with grooming, medication reminders, meal preparation, assistance with feeding, light housekeeping, respite care, transportation, and errand services to patients in their home or in a medical facility. The Facility-Based Services segment serves patients suffering from respiratory failure, neuromuscular disorders, cardiac disorders, non-healing wounds, renal disorders, cancer, head and neck injuries, and mental disorders, as well as treats patients diagnosed with musculoskeletal impairments. The company also operates institutional pharmacy, a family health center, a rural health clinic, and a retail pharmacy, as well as offers physical therapy services. As of December 31, 2017, it operated 318 home health services locations, 91 hospice locations, 12 community-based service locations, and 11 long-term acute care hospitals with 15 locations. LHC Group, Inc. was founded in 1994 and is based in Lafayette, Louisiana.

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