CHE vs HCSG vs ADUS vs ENSG

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

2% revenue growth year-over-year, versus 4. 1% for Chemed Corporation (CHE). Addus HomeCare Corporation (ADUS) offers the better valuation at 18. 7x trailing P/E (14. 1x 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.

7x versus The Ensign Group, Inc. at 29. 8x. On forward P/E, Addus HomeCare Corporation is actually cheaper at 14. 1x. 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 The Ensign Group, Inc. 's 1. 68x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Ensign Group, Inc.

(ENSG) delivered a total return of +103. 2%, compared to -21. 1% for Healthcare Services Group, Inc. (HCSG). Over 10 years, the gap is even starker: ENSG returned +752. 0% versus HCSG's -26. 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), Chemed Corporation (CHE) is the lower-risk stock at 0.

33β versus Healthcare Services Group, Inc. 's 1. 12β — meaning HCSG is approximately 243% more volatile than CHE relative to the S&P 500. On balance sheet safety, Healthcare Services Group, Inc. (HCSG) carries a lower debt/equity ratio of 5% versus 186% for The Ensign Group, Inc. — 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 4. 1% for Chemed Corporation (CHE). On earnings-per-share growth, the picture is similar: Healthcare Services Group, Inc. grew EPS 52. 8% year-over-year, compared to -7. 4% for Chemed Corporation. Over a 3-year CAGR, ENSG leads at 18. 7% 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.

Chemed Corporation (CHE) is the more profitable company, earning 10.

5% net margin versus 3. 2% for Healthcare Services Group, Inc. — meaning it keeps 10. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CHE leads at 13. 4% versus 2. 6% for HCSG. At the gross margin level — before operating expenses — ADUS leads at 32. 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.

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 The Ensign Group, Inc. 's 1. 68x. 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. 1x forward P/E versus 23. 2x for The Ensign Group, Inc. — 9. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADUS: 32. 3% to $128. 67.

In this comparison, CHE (0.

5% yield), ENSG (0. 1% yield) pay a dividend. HCSG, ADUS do not pay a meaningful dividend and should not be held primarily for income.

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

33), 0. 5% yield, +241. 8% 10Y return). Both have compounded well over 10 years (CHE: +241. 8%, HCSG: -26. 8%), 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: CHE is a small-cap quality compounder stock; HCSG is a small-cap quality compounder stock; ADUS is a small-cap high-growth stock; ENSG is a mid-cap high-growth stock. CHE pays a dividend while HCSG, ADUS, ENSG do 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.