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

Chemed Corporation and PACS Group, Inc. are both Medical Care Facilities companies. PACS Group, Inc. is the larger, with a market value of $8.0B against $7.0B — 1.1× the size. Chemed Corporation trades at the lower P/E: 25.5× against 28.6×. PACS Group, Inc. grew revenue faster over the last twelve months: 11.0% against 5.15%. Chemed Corporation has the higher net margin (10.6% vs 4.87%) and the higher return on invested capital (22.1% vs 19.3%). Across the 20 metrics below, Chemed Corporation leads on 11 and PACS Group, Inc. on 9.

Valuation

Metric CHE PACS Medical Care Facilities median
P/E 25.46 28.56 17.41
P/S 2.62 1.39 0.98
P/B 8.09 6.51 3.12
Price to free cash flow 23.48 17.69 16.05
EV/EBITDA 16.32 16.16 11.86
EV/Sales 2.69 1.42 1.37
Earnings yield 3.93% 3.50% 3.53%
Free cash flow yield 4.26% 5.65% 5.41%

Profitability

Metric CHE PACS Medical Care Facilities median
Gross margin 33.54% 17.11% 30.78%
Operating margin 13.94% 7.43% 5.97%
Net margin 10.61% 4.87% 3.05%
Free cash flow margin 11.15% 7.86% 6.97%
Return on equity 29.14% 26.49% 5.03%
Return on assets 16.90% 4.81% 2.78%
Return on invested capital 22.10% 19.25% 5.47%

Growth

Metric CHE PACS Medical Care Facilities median
Revenue growth (TTM) 5.15% 11.02% 6.38%
EPS growth (last fiscal year) (7.79%) 221.05% 21.70%
Revenue growth, 5-year CAGR 4.00% — 9.94%
Net income growth, 5-year CAGR (3.65%) — 0.00%

Health

Metric CHE PACS Medical Care Facilities median
Debt to equity 0.27 0.22 0.37
Current ratio 1.11 0.80 1.37
Net debt to EBITDA (0.18) 0.41 1.32

Dividend

Metric CHE PACS Medical Care Facilities median
Dividend yield 0.47% — 0.57%
Payout ratio 0.12 — 0.12

Size

Metric CHE PACS Medical Care Facilities median
Market cap 6.95b 7.97b 1.62b

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