Auna (NYSE:AUNA) & Addus HomeCare (NASDAQ:ADUS) Financial Analysis

Addus HomeCare (NASDAQ:ADUS) and Auna (NYSE:AUNA) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Addus HomeCare and Auna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Addus HomeCare	7.13%	9.96%	7.62%
Auna	0.44%	12.88%	3.24%

Institutional and Insider Ownership

95.3% of Addus HomeCare shares are held by institutional investors. 4.1% of Addus HomeCare shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Addus HomeCare and Auna, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Addus HomeCare	1	4	5	1	2.55
Auna	1	2	1	1	2.40

Addus HomeCare presently has a consensus price target of $129.33, suggesting a potential upside of 12.31%. Auna has a consensus price target of $6.97, suggesting a potential upside of 29.49%. Given Auna’s higher possible upside, analysts clearly believe Auna is more favorable than Addus HomeCare.

Risk and Volatility

Addus HomeCare has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Auna has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares Addus HomeCare and Auna”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Addus HomeCare	$1.42 billion	1.51	$95.91 million	$5.70	20.20
Auna	$1.23 billion	0.32	$27.39 million	$0.07	76.86

Addus HomeCare has higher revenue and earnings than Auna. Addus HomeCare is trading at a lower price-to-earnings ratio than Auna, indicating that it is currently the more affordable of the two stocks.

Summary

Addus HomeCare beats Auna on 11 of the 14 factors compared between the two stocks.

About Addus HomeCare

Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. Addus HomeCare Corporation was founded in 1979 and is headquartered in Frisco, Texas.

About Auna

Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.