Head to Head Comparison: Chemed (NYSE:CHE) vs. RadNet (NASDAQ:RDNT)

Chemed (NYSE:CHE) and RadNet (NASDAQ:RDNT) are both mid-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Chemed and RadNet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemed	0	1	4	0	2.80
RadNet	1	0	4	3	3.13

Chemed presently has a consensus target price of $578.50, indicating a potential upside of 30.96%. RadNet has a consensus target price of $76.80, indicating a potential downside of 4.19%. Given Chemed’s higher possible upside, equities analysts clearly believe Chemed is more favorable than RadNet.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chemed	11.56%	25.83%	17.77%
RadNet	-0.78%	2.41%	0.82%

Insider & Institutional Ownership

95.9% of Chemed shares are held by institutional investors. Comparatively, 77.9% of RadNet shares are held by institutional investors. 3.3% of Chemed shares are held by company insiders. Comparatively, 5.6% of RadNet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Chemed and RadNet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemed	$2.43 billion	2.65	$302.00 million	$19.45	22.71
RadNet	$1.83 billion	3.37	$2.79 million	($0.20)	-400.80

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.

Volatility and Risk

Chemed has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, RadNet has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Summary

Chemed beats RadNet on 9 of the 14 factors compared between the two stocks.

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.

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.