Head-To-Head Review: Chemed (NYSE:CHE) & RadNet (NASDAQ:RDNT)

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

Institutional and Insider Ownership

77.9% of RadNet shares are owned by institutional investors. Comparatively, 95.8% of Chemed shares are owned by institutional investors. 5.1% of RadNet shares are owned by company insiders. Comparatively, 3.3% of Chemed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$2.27 billion	2.64	-$18.65 million	($0.27)	-281.48
Chemed	$2.66 billion	2.57	$265.24 million	$20.90	25.19

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

RadNet has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Chemed has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for RadNet and Chemed, as reported by MarketBeat.

	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, indicating a potential upside of 18.42%. Chemed has a consensus price target of $603.00, indicating a potential upside of 14.54%. Given RadNet’s stronger consensus rating and higher probable upside, research analysts plainly believe RadNet is more favorable than Chemed.

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%

Summary

Chemed beats RadNet 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.