Addus HomeCare Corporation (ADUS) vs Healthcare Services Group, Inc. (HCSG)

Addus HomeCare Corporation and Healthcare Services Group, Inc. are both Medical Care Facilities companies. Addus HomeCare Corporation is the larger, with a market value of $2.4B against $1.8B — 1.3× the size. Healthcare Services Group, Inc. trades at the lower P/E: 16.6× against 21.1×. Addus HomeCare Corporation grew revenue faster over the last twelve months: 11.5% against 3.96%. Addus HomeCare Corporation has the higher net margin (7.39% vs 5.58%) and the lower return on invested capital (8.79% vs 21.8%). Across the 22 metrics below, Healthcare Services Group, Inc. leads on 14 and Addus HomeCare Corporation on 8.

Valuation

Metric ADUS HCSG Medical Care Facilities median
P/E 21.09 16.64 17.41
P/S 1.54 0.91 0.98
P/B 2.02 3.22 3.12
Price to free cash flow 16.05 15.99 16.05
EV/EBITDA 12.96 11.86 11.86
EV/Sales 1.49 0.81 1.37
Earnings yield 4.74% 6.01% 3.53%
Free cash flow yield 6.23% 6.25% 5.41%

Profitability

Metric ADUS HCSG Medical Care Facilities median
Gross margin 32.32% 16.12% 30.78%
Operating margin 10.33% 6.06% 5.97%
Net margin 7.39% 5.58% 3.05%
Free cash flow margin 9.61% 5.68% 6.97%
Return on equity 9.96% 20.41% 5.03%
Return on assets 7.73% 12.68% 2.78%
Return on invested capital 8.79% 21.75% 5.47%

Growth

Metric ADUS HCSG Medical Care Facilities median
Revenue growth (TTM) 11.53% 3.96% 6.38%
EPS growth (last fiscal year) 23.40% 52.83% 21.70%
Revenue growth, 5-year CAGR 13.22% 0.86% 9.94%
Net income growth, 5-year CAGR 23.69% (9.76%) 0.00%

Health

Metric ADUS HCSG Medical Care Facilities median
Debt to equity 0.02 0.00 0.37
Current ratio 1.64 2.82 1.37
Net debt to EBITDA 0.25 (3.11) 1.32

Dividend

Metric ADUS HCSG Medical Care Facilities median
Dividend yield — — 0.57%
Payout ratio — — 0.12

Size

Metric ADUS HCSG Medical Care Facilities median
Market cap 2.39b 1.79b 1.62b

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