NHC vs ADUS

For growth investors, Addus HomeCare Corporation (ADUS) is the stronger pick with 23.

2% revenue growth year-over-year, versus 13. 2% for National HealthCare Corporation (NHC). Addus HomeCare Corporation (ADUS) offers the better valuation at 18. 5x trailing P/E (14. 0x forward), making it the more compelling value choice. Analysts rate Addus HomeCare Corporation (ADUS) a "Buy" — based on 15 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.

On trailing P/E, Addus HomeCare Corporation (ADUS) is the cheapest at 18.

5x versus National HealthCare Corporation at 22. 1x. On forward P/E, Addus HomeCare Corporation is actually cheaper at 14. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Addus HomeCare Corporation wins at 0. 70x versus National HealthCare Corporation's 0. 92x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, National HealthCare Corporation (NHC) delivered a total return of +152.

9%, compared to +2. 6% for Addus HomeCare Corporation (ADUS). Over 10 years, the gap is even starker: ADUS returned +427. 2% versus NHC's +195. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Addus HomeCare Corporation (ADUS) is the lower-risk stock at 0.

58β versus National HealthCare Corporation's 0. 60β — meaning NHC is approximately 4% more volatile than ADUS relative to the S&P 500. On balance sheet safety, National HealthCare Corporation (NHC) carries a lower debt/equity ratio of 8% versus 19% for Addus HomeCare Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Addus HomeCare Corporation (ADUS) is pulling ahead at 23.

2% versus 13. 2% for National HealthCare Corporation (NHC). On earnings-per-share growth, the picture is similar: Addus HomeCare Corporation grew EPS 23. 2% year-over-year, compared to 17. 5% for National HealthCare Corporation. Over a 3-year CAGR, ADUS leads at 14. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

National HealthCare Corporation (NHC) is the more profitable company, earning 8.

2% net margin versus 6. 7% for Addus HomeCare Corporation — meaning it keeps 8. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADUS leads at 9. 7% versus 8. 7% for NHC. At the gross margin level — before operating expenses — NHC leads at 37. 3%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Addus HomeCare Corporation (ADUS) is the more undervalued stock at a PEG of 0. 70x versus National HealthCare Corporation's 0. 92x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Addus HomeCare Corporation (ADUS) trades at 14. 0x forward P/E versus 21. 3x for National HealthCare Corporation — 7. 2x cheaper on a one-year earnings basis.

In this comparison, NHC (1.

5% yield) pays a dividend. ADUS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, National HealthCare Corporation (NHC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

60), 1. 5% yield, +195. 8% 10Y return). Both have compounded well over 10 years (NHC: +195. 8%, ADUS: +427. 2%), 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.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: NHC is a small-cap quality compounder stock; ADUS is a small-cap high-growth stock. NHC pays a dividend while ADUS does not, making them suitable for different income and tax situations. 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.