Comprehensive Stock Comparison
Compare Option Care Health, Inc. (OPCH) vs Chemed Corporation (CHE) 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 | OPCH | 13.0% revenue growth vs CHE's 4.1% |
| Value | CHE | Lower P/E (16.8x vs 17.4x) |
| Quality / Margins | CHE | 10.5% net margin vs OPCH's 3.7% |
| Stability / Safety | CHE | Beta 0.27 vs OPCH's 0.32 |
| Dividends | CHE | 0.5% yield; 18-year raise streak; OPCH pays no meaningful dividend |
| Momentum (1Y) | OPCH | -3.1% vs CHE's -31.4% |
| Efficiency (ROA) | CHE | 17.2% ROA vs OPCH's 6.0%, ROIC 23.8% vs 15.3% |
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
Option Care Health is a leading provider of home and alternate-site infusion therapy services across the United States. It generates revenue primarily from providing specialized infusion treatments—including anti-infectives, immunoglobulin therapies, and nutrition support—which are billed to insurance providers, Medicare, and Medicaid. The company's competitive advantage lies in its national scale, extensive clinical expertise, and established payer relationships that create significant barriers to entry in the complex home infusion market.
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.
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
CHE leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). OPCH leads in 1 (Total Returns). 2 tied.
Financial Metrics (TTM)
OPCH is the larger business by revenue, generating $5.6B annually — 2.2x CHE's $2.5B. CHE is the more profitable business, keeping 10.5% of every revenue dollar as net income compared to OPCH's 3.7%. On growth, OPCH holds the edge at +8.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | OPCHOption Care Healt… | CHEChemed Corporation |
|---|---|---|
| RevenueTrailing 12 months | $5.6B | $2.5B |
| EBITDAEarnings before interest/tax | $405M | $387M |
| Net IncomeAfter-tax profit | $208M | $265M |
| Free Cash FlowCash after capex | $240M | $325M |
| Gross MarginGross profit ÷ Revenue | +19.3% | +23.0% |
| Operating MarginEBIT ÷ Revenue | +6.0% | +13.4% |
| Net MarginNet income ÷ Revenue | +3.7% | +10.5% |
| FCF MarginFCF ÷ Revenue | +4.2% | +12.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.8% | -0.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +5.7% | -9.0% |
Valuation Metrics
At 22.3x trailing earnings, CHE trades at a 12% valuation discount to OPCH's 25.4x P/E. On an enterprise value basis, OPCH's 12.0x EV/EBITDA is more attractive than CHE's 17.3x.
| Metric | OPCHOption Care Healt… | CHEChemed Corporation |
|---|---|---|
| Market CapShares × price | $5.1B | $5.8B |
| Enterprise ValueMkt cap + debt − cash | $4.9B | $5.9B |
| Trailing P/EPrice ÷ TTM EPS | 25.36x | 22.26x |
| Forward P/EPrice ÷ next-FY EPS est. | 17.36x | 16.75x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.02x | 17.31x |
| Price / SalesMarket cap ÷ Revenue | 0.90x | 2.29x |
| Price / BookPrice ÷ Book value/share | 3.91x | 6.03x |
| Price / FCFMarket cap ÷ FCF | 19.70x | 17.77x |
Profitability & Efficiency
CHE delivers a 27.1% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $16 for OPCH.
| Metric | OPCHOption Care Healt… | CHEChemed Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +15.7% | +27.1% |
| ROA (TTM)Return on assets | +6.0% | +17.2% |
| ROICReturn on invested capital | +15.3% | +23.8% |
| ROCEReturn on capital employed | +12.8% | +25.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | — | 0.15x |
| Net DebtTotal debt minus cash | -$233M | $69M |
| Cash & Equiv.Liquid assets | $233M | $75M |
| Total DebtShort + long-term debt | $0 | $144M |
| Interest CoverageEBIT ÷ Interest expense | 3.39x | 112.39x |
Total Returns (with DRIP)
A $10,000 investment in OPCH five years ago would be worth $16,419 today (with dividends reinvested), compared to $9,392 for CHE. Over the past 12 months, OPCH leads with a -3.1% total return vs CHE's -31.4%. The 3-year compound annual growth rate (CAGR) favors OPCH at 1.9% vs CHE's -7.3% — a key indicator of consistent wealth creation.
| Metric | OPCHOption Care Healt… | CHEChemed Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +0.7% | -3.1% |
| 1-Year ReturnPast 12 months | -3.1% | -31.4% |
| 3-Year ReturnCumulative with dividends | +5.8% | -20.3% |
| 5-Year ReturnCumulative with dividends | +64.2% | -6.1% |
| 10-Year ReturnCumulative with dividends | +275.7% | +230.4% |
| CAGR (3Y)Annualised 3-year return | +1.9% | -7.3% |
Risk & Volatility
CHE is the less volatile stock with a 0.27 beta — it tends to amplify market swings less than OPCH's 0.32 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. OPCH currently trades 88.2% from its 52-week high vs CHE's 65.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | OPCHOption Care Healt… | CHEChemed Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.32x | 0.27x |
| 52-Week HighHighest price in past year | $36.80 | $623.61 |
| 52-Week LowLowest price in past year | $24.24 | $385.10 |
| % of 52W HighCurrent price vs 52-week peak | +88.2% | +65.7% |
| RSI (14)Momentum oscillator 0–100 | 34.7 | 28.2 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 128K |
Analyst Outlook
Wall Street rates OPCH as "Buy" and CHE as "Hold". Consensus price targets imply 17.5% upside for OPCH (target: $38) vs 15.9% for CHE (target: $475). CHE is the only dividend payer here at 0.54% yield — a key consideration for income-focused portfolios.
| Metric | OPCHOption Care Healt… | CHEChemed Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $38.14 | $475.00 |
| # AnalystsCovering analysts | 14 | 9 |
| Dividend YieldAnnual dividend ÷ price | — | +0.5% |
| Dividend StreakConsecutive years of raises | 1 | 18 |
| Dividend / ShareAnnual DPS | — | $2.20 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.1% | +7.5% |
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 |
|---|---|---|---|
| Option Care Health,… (OPCH) | 100 | 224.89 | +124.9% |
| Chemed Corporation (CHE) | 100 | 96.71 | -3.3% |
Option Care Health,… (OPCH) returned +64% over 5 years vs Chemed Corporation (CHE)'s -6%. A $10,000 investment in OPCH 5 years ago would be worth $16,419 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Option Care Health,… (OPCH) | $936M | $5.6B | +503.8% |
| Chemed Corporation (CHE) | $1.6B | $2.5B | +60.4% |
Option Care Health, Inc.'s revenue grew from $936M (2016) to $5.6B (2025) — a 22.1% CAGR. Chemed Corporation's revenue grew from $1.6B (2016) to $2.5B (2025) — a 5.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Option Care Health,… (OPCH) | -4.6% | 3.7% | +180.4% |
| Chemed Corporation (CHE) | 6.9% | 10.5% | +52.0% |
Option Care Health, Inc.'s net margin went from -5% (2016) to 4% (2025). Chemed Corporation's net margin went from 7% (2016) to 10% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Option Care Health,… (OPCH) | 36.9 | 24.9 | -32.5% |
| Chemed Corporation (CHE) | 41.5 | 23.2 | -44.1% |
Option Care Health, Inc. has traded in a 19x–37x P/E range over 5 years; current trailing P/E is ~25x. Chemed Corporation has traded in a 23x–42x P/E range over 9 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Option Care Health,… (OPCH) | -1.77 | 1.28 | +172.3% |
| Chemed Corporation (CHE) | 6.48 | 18.42 | +184.3% |
Option Care Health, Inc.'s EPS grew from $-1.77 (2016) to $1.28 (2025). Chemed Corporation's EPS grew from $6.48 (2016) to $18.42 (2025) — a 12% CAGR.
Chart 6Free Cash Flow — 5 Years
Option Care Health, Inc. generated $258M FCF in 2025 (+41% vs 2021). Chemed Corporation generated $325M FCF in 2025 (+30% vs 2021).
OPCH vs CHE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is OPCH or CHE a better buy right now?
Chemed Corporation (CHE) offers the better valuation at 22.3x trailing P/E (16.8x forward), making it the more compelling value choice. Analysts rate Option Care Health, Inc. (OPCH) a "Buy" — based on 14 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 — OPCH or CHE?
On trailing P/E, Chemed Corporation (CHE) is the cheapest at 22.3x versus Option Care Health, Inc. at 25.4x. On forward P/E, Chemed Corporation is actually cheaper at 16.8x.
03Which is the better long-term investment — OPCH or CHE?
Over the past 5 years, Option Care Health, Inc. (OPCH) delivered a total return of +64.2%, compared to -6.1% for Chemed Corporation (CHE). A $10,000 investment in OPCH five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: OPCH returned +275.7% 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 — OPCH or CHE?
By beta (market sensitivity over 5 years), Chemed Corporation (CHE) is the lower-risk stock at 0.27β versus Option Care Health, Inc.'s 0.32β — meaning OPCH is approximately 18% more volatile than CHE relative to the S&P 500.
05Which has better profit margins — OPCH or CHE?
Chemed Corporation (CHE) is the more profitable company, earning 10.5% net margin versus 3.7% for Option Care Health, 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 6.0% for OPCH. At the gross margin level — before operating expenses — CHE leads at 23.0%, 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 OPCH or CHE more undervalued right now?
On forward earnings alone, Chemed Corporation (CHE) trades at 16.8x forward P/E versus 17.4x for Option Care Health, Inc. — 0.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OPCH: 17.5% to $38.14.
07Which pays a better dividend — OPCH or CHE?
In this comparison, CHE (0.5% yield) pays a dividend. OPCH does not pay a meaningful dividend and should not be held primarily for income.
08Is OPCH or CHE 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%, OPCH: +275.7%), 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 OPCH and CHE?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. CHE pays a dividend while OPCH 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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