Amedisys (NASDAQ: AMED) and Addus HomeCare Corporation (NASDAQ:ADUS) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitabiliy, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Amedisys 3.16% 12.60% 7.84%
Addus HomeCare Corporation 3.94% 10.29% 6.79%

Insider and Institutional Ownership

97.9% of Amedisys shares are held by institutional investors. Comparatively, 92.6% of Addus HomeCare Corporation shares are held by institutional investors. 2.8% of Amedisys shares are held by company insiders. Comparatively, 38.2% of Addus HomeCare Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Amedisys has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Addus HomeCare Corporation has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Amedisys and Addus HomeCare Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amedisys 0 3 5 0 2.63
Addus HomeCare Corporation 0 0 1 0 3.00

Amedisys currently has a consensus target price of $58.29, suggesting a potential downside of 10.88%. Addus HomeCare Corporation has a consensus target price of $30.00, suggesting a potential downside of 22.08%. Given Amedisys’ higher possible upside, equities analysts plainly believe Amedisys is more favorable than Addus HomeCare Corporation.

Earnings & Valuation

This table compares Amedisys and Addus HomeCare Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Amedisys $1.44 billion 1.53 $95.50 million $1.36 48.09
Addus HomeCare Corporation $409.69 million 1.07 $31.98 million $1.41 27.31

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

Summary

Amedisys beats Addus HomeCare Corporation on 10 of the 14 factors compared between the two stocks.

About Amedisys

Amedisys, Inc. is a healthcare services company. The Company’s segments are Home Health, Hospice, Personal Care and Other. The Company is a provider of home health, hospice and personal care services. As of December 31, 2016, the Company owned and operated 327 Medicare-certified home healthcare centers, 79 Medicare-certified hospice care centers and 14 personal-care care centers in 34 states within the United States and the District of Columbia. The Company’s Home Health segment provides compassionate healthcare to help its patients recover from surgery or illness, live with chronic diseases, and prevent avoidable hospital readmissions. The Hospice segment provides support for those who are dealing with a terminal illness. The Personal care segment provides patients with assistance with the essential activities of daily living.

About Addus HomeCare Corporation

Addus HomeCare Corporation is a provider of personal care services, which are provided primarily in the home. The Company’s personal care services include assistance with bathing, grooming, oral care, skincare, assistance with feeding and dressing, medication reminders, meal planning and preparation, housekeeping and transportation services and other activities of daily living. The Company provides these non-medical services on a long-term, continuous basis. As of December 31, 2016, the Company delivered services to its consumers through 114 individual agencies located in 24 states and three adult day services centers in Illinois. Its services, which include non-medical care, such as personal care services, are provided to consumers who are unable to independently perform some or all of their activities of daily living.

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