Chemed Corporation (CHE) vs National HealthCare Corporation (NHC)

Chemed Corporation and National HealthCare Corporation are both Medical Care Facilities companies. Chemed Corporation is the larger, with a market value of $6.7B against $3.9B — 1.8× the size. Chemed Corporation trades at the lower P/E: 25.7× against 26.9×. National HealthCare Corporation grew revenue faster over the last twelve months: 6.92% against 3.31%. Chemed Corporation has the higher net margin (10.6% vs 9.00%) and the higher return on invested capital (23.5% vs 10.5%). Both pay a dividend; National HealthCare Corporation yields more (1.08% vs 0.49%). Across the 23 metrics below, National HealthCare Corporation leads on 12 and Chemed Corporation on 11.

Valuation

Metric CHE NHC Medical Care Facilities median
P/E 25.71 26.92 20.56
P/S 2.60 2.43 0.85
P/B 8.13 3.36 2.84
Price to free cash flow 20.57 25.88 13.73
EV/EBITDA 16.48 18.91 10.21
EV/Sales 2.64 2.31 1.32
Earnings yield 3.89% 3.71% 2.25%
Free cash flow yield 4.86% 3.86% 4.16%

Profitability

Metric CHE NHC Medical Care Facilities median
Gross margin 33.11% 100.00% 30.78%
Operating margin 13.46% 9.28% 5.74%
Net margin 10.60% 9.00% 2.32%
Free cash flow margin 12.64% 9.40% 5.46%
Return on equity 27.11% 13.03% 8.76%
Return on assets 16.68% 9.05% 2.18%
Return on invested capital 23.46% 10.49% 5.01%

Growth

Metric CHE NHC Medical Care Facilities median
Revenue growth (TTM) 3.31% 6.92% 7.12%
EPS growth (last fiscal year) (7.79%) 17.46% 17.46%
Revenue growth, 5-year CAGR 4.00% 8.10% 9.58%
Net income growth, 5-year CAGR (3.65%) 23.44% 0.00%

Health

Metric CHE NHC Medical Care Facilities median
Debt to equity 0.17 0.00 0.37
Current ratio 0.91 1.86 1.20
Net debt to EBITDA (0.18) (1.74) 1.07

Dividend

Metric CHE NHC Medical Care Facilities median
Dividend yield 0.49% 1.08% 0.63%
Payout ratio 0.13 0.29 0.13

Size

Metric CHE NHC Medical Care Facilities median
Market cap 6.74b 3.85b 1.47b

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