Analyzing CareRx (OTCMKTS:CHHHF) and Chemed (NYSE:CHE)

CareRx (OTCMKTS:CHHHF) and Chemed (NYSE:CHE) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for CareRx and Chemed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareRx	0	1	0	0	2.00
Chemed	0	0	2	0	3.00

Chemed has a consensus target price of $681.00, indicating a potential upside of 12.72%. Given Chemed’s stronger consensus rating and higher possible upside, analysts plainly believe Chemed is more favorable than CareRx.

Valuation & Earnings

This table compares CareRx and Chemed’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareRx	N/A	N/A	N/A	N/A	N/A
Chemed	$2.26 billion	4.03	$272.51 million	$17.92	33.71

Chemed has higher revenue and earnings than CareRx.

Profitability

This table compares CareRx and Chemed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareRx	N/A	N/A	N/A
Chemed	12.03%	32.29%	20.74%

Institutional and Insider Ownership

95.8% of Chemed shares are owned by institutional investors. 3.8% of Chemed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Chemed beats CareRx on 9 of the 9 factors compared between the two stocks.

About CareRx

CareRx Corporation, together with its subsidiaries, provides pharmacy services to seniors homes and other congregate care settings in Canada. The company offers medication management, technology, and program solutions. It serves long-term care homes, retirement homes, assisted living facilities, and group homes. The company was formerly known as Centric Health Corporation and changed its name to CareRx Corporation in June 2020. CareRx Corporation was incorporated in 2001 and is based in Toronto, Canada.

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.