Analyzing Chemed Corp. (CHE) & Cancer Genetics (CGIX)

Chemed Corp. (NYSE: CHE) and Cancer Genetics (NASDAQ:CGIX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Risk and Volatility

Chemed Corp. has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Institutional and Insider Ownership

97.0% of Chemed Corp. shares are owned by institutional investors. Comparatively, 16.1% of Cancer Genetics shares are owned by institutional investors. 4.9% of Chemed Corp. shares are owned by insiders. Comparatively, 21.3% of Cancer Genetics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chemed Corp. and Cancer Genetics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemed Corp. 0 1 1 0 2.50
Cancer Genetics 0 1 2 0 2.67

Chemed Corp. presently has a consensus price target of $214.50, suggesting a potential upside of 4.36%. Cancer Genetics has a consensus price target of $6.00, suggesting a potential upside of 122.22%. Given Cancer Genetics’ stronger consensus rating and higher probable upside, analysts plainly believe Cancer Genetics is more favorable than Chemed Corp..

Earnings and Valuation

This table compares Chemed Corp. and Cancer Genetics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chemed Corp. $1.62 billion 2.03 $226.52 million $3.99 51.51
Cancer Genetics $27.55 million 1.94 -$11.12 million ($1.05) -2.57

Chemed Corp. has higher revenue and earnings than Cancer Genetics. Cancer Genetics is trading at a lower price-to-earnings ratio than Chemed Corp., indicating that it is currently the more affordable of the two stocks.

Dividends

Chemed Corp. pays an annual dividend of $1.12 per share and has a dividend yield of 0.5%. Cancer Genetics does not pay a dividend. Chemed Corp. pays out 28.1% of its earnings in the form of a dividend. Cancer Genetics has increased its dividend for 8 consecutive years.

Profitability

This table compares Chemed Corp. and Cancer Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemed Corp. 4.16% 26.18% 14.62%
Cancer Genetics -68.48% -48.78% -26.29%

Summary

Chemed Corp. beats Cancer Genetics on 9 of the 16 factors compared between the two stocks.

About Chemed Corp.

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.

About Cancer Genetics

Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.

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