Chemed Corporation (CHE) vs PACS Group, Inc. (PACS)

Chemed Corporation and PACS Group, Inc. are both Medical Care Facilities companies. Chemed Corporation and PACS Group, Inc. are of similar size ($6.6B and $6.5B). PACS Group, Inc. trades at the lower P/E: 24.3× against 25.7×. PACS Group, Inc. grew revenue faster over the last twelve months: 15.2% against 3.31%. Chemed Corporation has the higher net margin (10.6% vs 4.85%) and the higher return on invested capital (23.5% vs 21.4%). Across the 20 metrics below, PACS Group, Inc. leads on 12 and Chemed Corporation on 8.

Valuation

Metric CHE PACS Medical Care Facilities median
P/E 25.70 24.29 19.16
P/S 2.60 1.18 0.90
P/B 8.12 5.85 2.91
Price to free cash flow 20.56 14.30 12.62
EV/EBITDA 16.59 13.73 10.06
EV/Sales 2.66 1.19 1.35
Earnings yield 3.89% 4.12% 2.30%
Free cash flow yield 4.86% 6.99% 4.14%

Profitability

Metric CHE PACS Medical Care Facilities median
Gross margin 33.11% 16.59% 30.78%
Operating margin 13.46% 7.39% 5.74%
Net margin 10.60% 4.85% 2.32%
Free cash flow margin 12.64% 8.22% 5.46%
Return on equity 27.11% 27.92% 8.76%
Return on assets 16.68% 4.82% 2.18%
Return on invested capital 23.46% 21.42% 5.40%

Growth

Metric CHE PACS Medical Care Facilities median
Revenue growth (TTM) 3.31% 15.15% 7.12%
EPS growth (last fiscal year) (7.79%) 221.05% —
Revenue growth, 5-year CAGR 4.00% — 9.58%
Net income growth, 5-year CAGR (3.65%) — 0.00%

Health

Metric CHE PACS Medical Care Facilities median
Debt to equity 0.17 0.22 0.30
Current ratio 0.91 0.91 1.22
Net debt to EBITDA (0.18) 0.41 1.32

Dividend

Metric CHE PACS Medical Care Facilities median
Dividend yield 0.26% — 0.85%
Payout ratio 0.10 — 0.00

Size

Metric CHE PACS Medical Care Facilities median
Market cap 6.54b 6.56b 1.34b

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