Chemed (NYSE:CHE – Get Free Report) is one of 235 public companies in the “Healthcare Providers & Services” industry, but how does it compare to its peers? We will compare Chemed to similar businesses based on the strength of its analyst recommendations, earnings, institutional ownership, profitability, risk, valuation and dividends.
Institutional and Insider Ownership
95.8% of Chemed shares are owned by institutional investors. Comparatively, 56.9% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 3.3% of Chemed shares are owned by company insiders. Comparatively, 15.4% of shares of all “Healthcare Providers & Services” companies 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.
Volatility & Risk
Chemed has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Chemed’s peers have a beta of 0.97, suggesting that their average stock price is 3% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Chemed | $2.60 billion | $265.24 million | 26.16 |
| Chemed Competitors | $18.63 billion | $281.57 million | 1.49 |
Chemed’s peers have higher revenue and earnings than Chemed. Chemed is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares Chemed and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chemed | 10.60% | 31.77% | 18.90% |
| Chemed Competitors | -7.69% | -139.74% | -1.50% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Chemed and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chemed | 0 | 5 | 1 | 0 | 2.17 |
| Chemed Competitors | 1792 | 7547 | 12968 | 789 | 2.55 |
Chemed presently has a consensus price target of $530.75, indicating a potential upside of 1.91%. As a group, “Healthcare Providers & Services” companies have a potential upside of 14.56%. Given Chemed’s peers stronger consensus rating and higher probable upside, analysts clearly believe Chemed has less favorable growth aspects than its peers.
Dividends
Chemed pays an annual dividend of $2.80 per share and has a dividend yield of 0.5%. Chemed pays out 14.1% of its earnings in the form of a dividend. As a group, “Healthcare Providers & Services” companies pay a dividend yield of 1.6% and pay out 25.8% of their earnings in the form of a dividend. Chemed has increased its dividend for 16 consecutive years.
Summary
Chemed peers beat Chemed on 9 of the 15 factors compared.
Chemed Company Profile
Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.
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