Comprehensive Stock Comparison
Compare Chemed Corporation (CHE) vs Tenet Healthcare Corporation (THC) 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 | CHE | 4.1% revenue growth vs THC's 3.1% |
| Value | THC | Lower P/E (14.1x vs 16.8x) |
| Quality / Margins | CHE | 10.5% net margin vs THC's 6.6% |
| Stability / Safety | CHE | Beta 0.27 vs THC's 0.93, lower leverage |
| Dividends | CHE | 0.5% yield; 18-year raise streak; THC pays no meaningful dividend |
| Momentum (1Y) | THC | +89.1% vs CHE's -31.4% |
| Efficiency (ROA) | CHE | 17.2% ROA vs THC's 4.7%, ROIC 23.8% vs 13.5% |
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.
Tenet Healthcare is a diversified healthcare services company that operates hospitals, ambulatory surgery centers, and urgent care facilities. It generates revenue primarily from hospital operations (acute care services) and ambulatory care centers, with additional income from its Conifer segment providing revenue cycle management services to other healthcare providers. The company's scale and integrated network of facilities across multiple states create operational efficiencies and referral pathways that serve as its competitive advantage.
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
THC leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). CHE leads in 2 (Profitability & Efficiency, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
THC is the larger business by revenue, generating $21.3B annually — 8.4x CHE's $2.5B. Profitability is closely matched — net margins range from 10.5% (CHE) to 6.6% (THC). On growth, THC holds the edge at +9.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CHEChemed Corporation | THCTenet Healthcare … |
|---|---|---|
| RevenueTrailing 12 months | $2.5B | $21.3B |
| EBITDAEarnings before interest/tax | $387M | $4.4B |
| Net IncomeAfter-tax profit | $265M | $1.4B |
| Free Cash FlowCash after capex | $325M | $2.5B |
| Gross MarginGross profit ÷ Revenue | +23.0% | +55.9% |
| Operating MarginEBIT ÷ Revenue | +13.4% | +16.5% |
| Net MarginNet income ÷ Revenue | +10.5% | +6.6% |
| FCF MarginFCF ÷ Revenue | +12.9% | +11.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.1% | +9.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -9.0% | +27.1% |
Valuation Metrics
At 15.5x trailing earnings, THC trades at a 31% valuation discount to CHE's 22.3x P/E. On an enterprise value basis, THC's 7.2x EV/EBITDA is more attractive than CHE's 17.3x.
| Metric | CHEChemed Corporation | THCTenet Healthcare … |
|---|---|---|
| Market CapShares × price | $5.8B | $21.0B |
| Enterprise ValueMkt cap + debt − cash | $5.9B | $31.3B |
| Trailing P/EPrice ÷ TTM EPS | 22.26x | 15.45x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.75x | 14.12x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.47x |
| EV / EBITDAEnterprise value multiple | 17.31x | 7.17x |
| Price / SalesMarket cap ÷ Revenue | 2.29x | 0.99x |
| Price / BookPrice ÷ Book value/share | 6.03x | 2.42x |
| Price / FCFMarket cap ÷ FCF | 17.77x | 8.32x |
Profitability & Efficiency
CHE delivers a 27.1% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $16 for THC. CHE carries lower financial leverage with a 0.15x debt-to-equity ratio, signaling a more conservative balance sheet compared to THC's 1.47x. On the Piotroski fundamental quality scale (0–9), THC scores 7/9 vs CHE's 5/9, reflecting strong financial health.
| Metric | CHEChemed Corporation | THCTenet Healthcare … |
|---|---|---|
| ROE (TTM)Return on equity | +27.1% | +15.7% |
| ROA (TTM)Return on assets | +17.2% | +4.7% |
| ROICReturn on invested capital | +23.8% | +13.5% |
| ROCEReturn on capital employed | +25.7% | +14.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.15x | 1.47x |
| Net DebtTotal debt minus cash | $69M | $10.3B |
| Cash & Equiv.Liquid assets | $75M | $2.9B |
| Total DebtShort + long-term debt | $144M | $13.2B |
| Interest CoverageEBIT ÷ Interest expense | 112.39x | 5.85x |
Total Returns (with DRIP)
A $10,000 investment in THC five years ago would be worth $45,270 today (with dividends reinvested), compared to $9,392 for CHE. Over the past 12 months, THC leads with a +89.1% total return vs CHE's -31.4%. The 3-year compound annual growth rate (CAGR) favors THC at 59.9% vs CHE's -7.3% — a key indicator of consistent wealth creation.
| Metric | CHEChemed Corporation | THCTenet Healthcare … |
|---|---|---|
| YTD ReturnYear-to-date | -3.1% | +20.0% |
| 1-Year ReturnPast 12 months | -31.4% | +89.1% |
| 3-Year ReturnCumulative with dividends | -20.3% | +309.0% |
| 5-Year ReturnCumulative with dividends | -6.1% | +352.7% |
| 10-Year ReturnCumulative with dividends | +230.4% | +864.5% |
| CAGR (3Y)Annualised 3-year return | -7.3% | +59.9% |
Risk & Volatility
CHE is the less volatile stock with a 0.27 beta — it tends to amplify market swings less than THC's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. THC currently trades 99.5% 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 | THCTenet Healthcare … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.27x | 0.93x |
| 52-Week HighHighest price in past year | $623.61 | $240.57 |
| 52-Week LowLowest price in past year | $385.10 | $109.82 |
| % of 52W HighCurrent price vs 52-week peak | +65.7% | +99.5% |
| RSI (14)Momentum oscillator 0–100 | 28.2 | 74.5 |
| Avg Volume (50D)Average daily shares traded | 128K | 826K |
Analyst Outlook
Wall Street rates CHE as "Hold" and THC as "Buy". Consensus price targets imply 15.9% upside for CHE (target: $475) vs 7.5% for THC (target: $257). CHE is the only dividend payer here at 0.54% yield — a key consideration for income-focused portfolios.
| Metric | CHEChemed Corporation | THCTenet Healthcare … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $475.00 | $257.45 |
| # AnalystsCovering analysts | 9 | 32 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | — |
| Dividend StreakConsecutive years of raises | 18 | 0 |
| Dividend / ShareAnnual DPS | $2.20 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +7.5% | +6.8% |
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% |
| Tenet Healthcare Co… (THC) | 100 | 662.08 | +562.1% |
Tenet Healthcare Co… (THC) returned +353% over 5 years vs Chemed Corporation (CHE)'s -6%. A $10,000 investment in THC 5 years ago would be worth $45,270 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | $1.6B | $2.5B | +60.4% |
| Tenet Healthcare Co… (THC) | $19.6B | $21.3B | +8.6% |
Chemed Corporation's revenue grew from $1.6B (2016) to $2.5B (2025) — a 5.4% CAGR. Tenet Healthcare Corporation's revenue grew from $19.6B (2016) to $21.3B (2025) — a 0.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 6.9% | 10.5% | +52.0% |
| Tenet Healthcare Co… (THC) | -1.0% | 6.6% | +774.8% |
Chemed Corporation's net margin went from 7% (2016) to 10% (2025). Tenet Healthcare Corporation's net margin went from -1% (2016) to 7% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 41.5 | 23.2 | -44.1% |
| Tenet Healthcare Co… (THC) | 16 | 12.8 | -20.0% |
Chemed Corporation has traded in a 23x–42x P/E range over 9 years; current trailing P/E is ~22x. Tenet Healthcare Corporation has traded in a 4x–16x P/E range over 7 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chemed Corporation (CHE) | 6.48 | 18.42 | +184.3% |
| Tenet Healthcare Co… (THC) | -1.93 | 15.49 | +902.6% |
Chemed Corporation's EPS grew from $6.48 (2016) to $18.42 (2025) — a 12% CAGR. Tenet Healthcare Corporation's EPS grew from $-1.93 (2016) to $15.49 (2025).
Chart 6Free Cash Flow — 5 Years
Chemed Corporation generated $325M FCF in 2025 (+30% vs 2021). Tenet Healthcare Corporation generated $3B FCF in 2025 (+178% vs 2021).
CHE vs THC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CHE or THC a better buy right now?
Tenet Healthcare Corporation (THC) offers the better valuation at 15.5x trailing P/E (14.1x forward), making it the more compelling value choice. Analysts rate Tenet Healthcare Corporation (THC) a "Buy" — based on 32 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 THC?
On trailing P/E, Tenet Healthcare Corporation (THC) is the cheapest at 15.5x versus Chemed Corporation at 22.3x. On forward P/E, Tenet Healthcare Corporation is actually cheaper at 14.1x.
03Which is the better long-term investment — CHE or THC?
Over the past 5 years, Tenet Healthcare Corporation (THC) delivered a total return of +352.7%, compared to -6.1% for Chemed Corporation (CHE). A $10,000 investment in THC five years ago would be worth approximately $45K today (assuming dividends reinvested). Over 10 years, the gap is even starker: THC returned +864.5% 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 THC?
By beta (market sensitivity over 5 years), Chemed Corporation (CHE) is the lower-risk stock at 0.27β versus Tenet Healthcare Corporation's 0.93β — meaning THC is approximately 241% more volatile than CHE relative to the S&P 500. On balance sheet safety, Chemed Corporation (CHE) carries a lower debt/equity ratio of 15% versus 147% for Tenet Healthcare Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — CHE or THC?
Chemed Corporation (CHE) is the more profitable company, earning 10.5% net margin versus 6.6% for Tenet Healthcare Corporation — meaning it keeps 10.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: THC leads at 16.5% versus 13.4% for CHE. At the gross margin level — before operating expenses — THC leads at 41.4%, 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 THC more undervalued right now?
On forward earnings alone, Tenet Healthcare Corporation (THC) trades at 14.1x forward P/E versus 16.8x for Chemed Corporation — 2.6x 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 THC?
In this comparison, CHE (0.5% yield) pays a dividend. THC does not pay a meaningful dividend and should not be held primarily for income.
08Is CHE or THC better for a retirement portfolio?
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 0.27), 0.5% yield, +230.4% 10Y return). Both have compounded well over 10 years (CHE: +230.4%, THC: +864.5%), 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 THC?
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; THC is a mid-cap deep-value stock. CHE pays a dividend while THC 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.
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