BioTelemetry (NASDAQ: BEAT) and Chemed (NYSE:CHE) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
87.6% of BioTelemetry shares are held by institutional investors. Comparatively, 94.6% of Chemed shares are held by institutional investors. 9.6% of BioTelemetry shares are held by insiders. Comparatively, 4.9% of Chemed 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.
Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.4%. BioTelemetry does not pay a dividend. Chemed pays out 19.3% of its earnings in the form of a dividend. BioTelemetry has raised its dividend for 9 consecutive years.
This table compares BioTelemetry and Chemed’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
BioTelemetry has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Chemed has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Earnings & Valuation
This table compares BioTelemetry and Chemed’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BioTelemetry||$286.78 million||3.72||-$15.95 million||($0.49)||-66.94|
|Chemed||$1.67 billion||2.69||$98.17 million||$5.81||47.81|
Chemed has higher revenue and earnings than BioTelemetry. BioTelemetry is trading at a lower price-to-earnings ratio than Chemed, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for BioTelemetry and Chemed, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BioTelemetry currently has a consensus price target of $43.67, suggesting a potential upside of 33.13%. Chemed has a consensus price target of $266.50, suggesting a potential downside of 4.06%. Given BioTelemetry’s stronger consensus rating and higher probable upside, equities analysts plainly believe BioTelemetry is more favorable than Chemed.
Chemed beats BioTelemetry on 10 of the 17 factors compared between the two stocks.
BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).
Chemed Corporation purchases, operates and divests subsidiaries engaged in various business activities. The Company operates through two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. VITAS is the provider of hospice services in an industry dominated primarily by small, non-profit, community-based hospices. VITAS provides hospice care to Medicare beneficiaries participating in these managed care programs. A portion of its VITAS business is operated in the state of Florida. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers.
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