Comprehensive Stock Comparison
Compare Chemed Corporation (CHE) vs HCA Healthcare, Inc. (HCA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | HCA | 7.1% revenue growth vs CHE's 4.1% |
| Value | CHE | Lower P/E (16.8x vs 17.5x) |
| Quality / Margins | CHE | 10.5% net margin vs HCA's 9.0% |
| Stability / Safety | CHE | Beta 0.27 vs HCA's 0.29 |
| Dividends | HCA | 0.6% yield, 5-year raise streak, vs CHE's 0.5% |
| Momentum (1Y) | HCA | +73.9% vs CHE's -31.4% |
| Efficiency (ROA) | CHE | 17.2% ROA vs HCA's 11.2%, ROIC 23.8% vs 19.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Chemed Corporation operates two distinct healthcare and home services businesses. It generates revenue primarily from hospice care services through its VITAS segment (~70% of revenue) and plumbing/drain cleaning services through its Roto-Rooter segment (~30%). The company benefits from strong brand recognition in both sectors—VITAS as a leading hospice provider and Roto-Rooter as a trusted plumbing service name—creating dual moats in specialized healthcare and essential home services.
HCA Healthcare is one of the largest for-profit hospital operators in the United States, providing comprehensive medical and surgical services through its network of acute care hospitals and outpatient facilities. It generates revenue primarily from patient services — including inpatient hospital stays, outpatient procedures, and emergency care — with the vast majority coming from government programs like Medicare and Medicaid alongside private insurance reimbursements. The company's scale advantage — operating over 180 hospitals concentrated in high-growth markets — creates significant purchasing power with suppliers and negotiating leverage with payers.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HCA leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). CHE leads in 1 (Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
HCA is the larger business by revenue, generating $75.6B annually — 29.9x CHE's $2.5B. Profitability is closely matched — net margins range from 10.5% (CHE) to 9.0% (HCA). On growth, HCA holds the edge at +6.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CHEChemed Corporation | HCAHCA Healthcare, I… |
|---|---|---|
| RevenueTrailing 12 months | $2.5B | $75.6B |
| EBITDAEarnings before interest/tax | $387M | $15.5B |
| Net IncomeAfter-tax profit | $265M | $6.8B |
| Free Cash FlowCash after capex | $325M | $7.7B |
| Gross MarginGross profit ÷ Revenue | +23.0% | +41.5% |
| Operating MarginEBIT ÷ Revenue | +13.4% | +15.8% |
| Net MarginNet income ÷ Revenue | +10.5% | +9.0% |
| FCF MarginFCF ÷ Revenue | +12.9% | +10.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.1% | +6.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -9.0% | +44.6% |
Valuation Metrics
At 18.7x trailing earnings, HCA trades at a 16% valuation discount to CHE's 22.3x P/E. On an enterprise value basis, HCA's 10.8x EV/EBITDA is more attractive than CHE's 17.3x.
| Metric | CHEChemed Corporation | HCAHCA Healthcare, I… |
|---|---|---|
| Market CapShares × price | $5.8B | $118.5B |
| Enterprise ValueMkt cap + debt − cash | $5.9B | $167.6B |
| Trailing P/EPrice ÷ TTM EPS | 22.26x | 18.66x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.75x | 17.50x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.89x |
| EV / EBITDAEnterprise value multiple | 17.31x | 10.82x |
| Price / SalesMarket cap ÷ Revenue | 2.29x | 1.57x |
| Price / BookPrice ÷ Book value/share | 6.03x | — |
| Price / FCFMarket cap ÷ FCF | 17.77x | 15.40x |
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), HCA scores 7/9 vs CHE's 5/9, reflecting strong financial health.
| Metric | CHEChemed Corporation | HCAHCA Healthcare, I… |
|---|---|---|
| ROE (TTM)Return on equity | +27.1% | — |
| ROA (TTM)Return on assets | +17.2% | +11.2% |
| ROICReturn on invested capital | +23.8% | +19.9% |
| ROCEReturn on capital employed | +25.7% | +27.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.15x | — |
| Net DebtTotal debt minus cash | $69M | $49.2B |
| Cash & Equiv.Liquid assets | $75M | $1.0B |
| Total DebtShort + long-term debt | $144M | $50.2B |
| Interest CoverageEBIT ÷ Interest expense | 112.39x | 5.37x |
Total Returns (with DRIP)
A $10,000 investment in HCA five years ago would be worth $30,878 today (with dividends reinvested), compared to $9,392 for CHE. Over the past 12 months, HCA leads with a +73.9% total return vs CHE's -31.4%. The 3-year compound annual growth rate (CAGR) favors HCA at 30.2% vs CHE's -7.3% — a key indicator of consistent wealth creation.
| Metric | CHEChemed Corporation | HCAHCA Healthcare, I… |
|---|---|---|
| YTD ReturnYear-to-date | -3.1% | +12.6% |
| 1-Year ReturnPast 12 months | -31.4% | +73.9% |
| 3-Year ReturnCumulative with dividends | -20.3% | +120.8% |
| 5-Year ReturnCumulative with dividends | -6.1% | +208.8% |
| 10-Year ReturnCumulative with dividends | +230.4% | +688.3% |
| CAGR (3Y)Annualised 3-year return | -7.3% | +30.2% |
Risk & Volatility
CHE is the less volatile stock with a 0.27 beta — it tends to amplify market swings less than HCA's 0.29 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HCA currently trades 95.8% from its 52-week high vs CHE's 65.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CHEChemed Corporation | HCAHCA Healthcare, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.27x | 0.29x |
| 52-Week HighHighest price in past year | $623.61 | $552.90 |
| 52-Week LowLowest price in past year | $385.10 | $295.00 |
| % of 52W HighCurrent price vs 52-week peak | +65.7% | +95.8% |
| RSI (14)Momentum oscillator 0–100 | 28.2 | 56.0 |
| Avg Volume (50D)Average daily shares traded | 128K | 879K |
Analyst Outlook
Wall Street rates CHE as "Hold" and HCA as "Buy". Consensus price targets imply 15.9% upside for CHE (target: $475) vs -1.1% for HCA (target: $524). For income investors, HCA offers the higher dividend yield at 0.56% vs CHE's 0.54%.
| Metric | CHEChemed Corporation | HCAHCA Healthcare, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $475.00 | $523.92 |
| # AnalystsCovering analysts | 9 | 46 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +0.6% |
| Dividend StreakConsecutive years of raises | 18 | 5 |
| Dividend / ShareAnnual DPS | $2.20 | $2.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +7.5% | +8.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 100 | 96.71 | -3.3% |
| HCA Healthcare, Inc. (HCA) | 100 | 367.9 | +267.9% |
HCA Healthcare, Inc. (HCA) returned +209% over 5 years vs Chemed Corporation (CHE)'s -6%. A $10,000 investment in HCA 5 years ago would be worth $30,878 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | $1.6B | $2.5B | +60.4% |
| HCA Healthcare, Inc. (HCA) | $41.5B | $75.6B | +82.2% |
Chemed Corporation's revenue grew from $1.6B (2016) to $2.5B (2025) — a 5.4% CAGR. HCA Healthcare, Inc.'s revenue grew from $41.5B (2016) to $75.6B (2025) — a 6.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 6.9% | 10.5% | +52.0% |
| HCA Healthcare, Inc. (HCA) | 7.0% | 9.0% | +28.8% |
Chemed Corporation's net margin went from 7% (2016) to 10% (2025). HCA Healthcare, Inc.'s net margin went from 7% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 41.5 | 23.2 | -44.1% |
| HCA Healthcare, Inc. (HCA) | 14.8 | 16.5 | +11.5% |
Chemed Corporation has traded in a 23x–42x P/E range over 9 years; current trailing P/E is ~22x. HCA Healthcare, Inc. has traded in a 12x–17x P/E range over 9 years; current trailing P/E is ~19x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 6.48 | 18.42 | +184.3% |
| HCA Healthcare, Inc. (HCA) | 7.3 | 28.38 | +288.8% |
Chemed Corporation's EPS grew from $6.48 (2016) to $18.42 (2025) — a 12% CAGR. HCA Healthcare, Inc.'s EPS grew from $7.30 (2016) to $28.38 (2025) — a 16% CAGR.
Chart 6Free Cash Flow — 5 Years
Chemed Corporation generated $325M FCF in 2025 (+30% vs 2021). HCA Healthcare, Inc. generated $8B FCF in 2025 (+43% vs 2021).
CHE vs HCA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CHE or HCA a better buy right now?
HCA Healthcare, Inc. (HCA) offers the better valuation at 18.7x trailing P/E (17.5x forward), making it the more compelling value choice. Analysts rate HCA Healthcare, Inc. (HCA) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CHE or HCA?
On trailing P/E, HCA Healthcare, Inc. (HCA) is the cheapest at 18.7x versus Chemed Corporation at 22.3x. On forward P/E, Chemed Corporation is actually cheaper at 16.8x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — CHE or HCA?
Over the past 5 years, HCA Healthcare, Inc. (HCA) delivered a total return of +208.8%, compared to -6.1% for Chemed Corporation (CHE). A $10,000 investment in HCA five years ago would be worth approximately $31K today (assuming dividends reinvested). Over 10 years, the gap is even starker: HCA returned +688.3% versus CHE's +230.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CHE or HCA?
By beta (market sensitivity over 5 years), Chemed Corporation (CHE) is the lower-risk stock at 0.27β versus HCA Healthcare, Inc.'s 0.29β — meaning HCA is approximately 8% more volatile than CHE relative to the S&P 500.
05Which has better profit margins — CHE or HCA?
Chemed Corporation (CHE) is the more profitable company, earning 10.5% net margin versus 9.0% for HCA Healthcare, Inc. — meaning it keeps 10.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCA leads at 15.8% versus 13.4% for CHE. At the gross margin level — before operating expenses — HCA leads at 41.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CHE or HCA more undervalued right now?
On forward earnings alone, Chemed Corporation (CHE) trades at 16.8x forward P/E versus 17.5x for HCA Healthcare, Inc. — 0.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CHE: 15.9% to $475.00.
07Which pays a better dividend — CHE or HCA?
All stocks in this comparison pay dividends. HCA Healthcare, Inc. (HCA) offers the highest yield at 0.6%, versus 0.5% for Chemed Corporation (CHE).
08Is CHE or HCA better for a retirement portfolio?
For long-horizon retirement investors, HCA Healthcare, Inc. (HCA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.29), 0.6% yield, +688.3% 10Y return). Both have compounded well over 10 years (HCA: +688.3%, CHE: +230.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CHE and HCA?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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