RadNet (NASDAQ:RDNT – Get Free Report) and Chemed (NYSE:CHE – Get Free Report) are both mid-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Profitability
This table compares RadNet and Chemed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RadNet | -0.93% | 2.61% | 0.91% |
| Chemed | 10.61% | 35.18% | 19.43% |
Institutional & Insider Ownership
77.9% of RadNet shares are held by institutional investors. Comparatively, 95.8% of Chemed shares are held by institutional investors. 5.1% of RadNet shares are held by insiders. Comparatively, 3.3% of Chemed shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
RadNet has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Chemed has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.
Valuation & Earnings
This table compares RadNet and Chemed”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RadNet | $2.04 billion | 3.10 | -$18.65 million | ($0.27) | -297.26 |
| Chemed | $2.53 billion | 2.82 | $265.24 million | $20.90 | 26.26 |
Chemed has higher revenue and earnings than RadNet. RadNet is trading at a lower price-to-earnings ratio than Chemed, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for RadNet and Chemed, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RadNet | 1 | 0 | 5 | 3 | 3.11 |
| Chemed | 0 | 4 | 3 | 0 | 2.43 |
RadNet presently has a consensus price target of $90.00, suggesting a potential upside of 12.14%. Chemed has a consensus price target of $603.00, suggesting a potential upside of 9.86%. Given RadNet’s stronger consensus rating and higher possible upside, equities research analysts clearly believe RadNet is more favorable than Chemed.
Summary
RadNet beats Chemed on 8 of the 15 factors compared between the two stocks.
About RadNet
RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.
About Chemed
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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