Critical Analysis: Streamline Health Solutions (STRM) versus Chemed (CHE)
Streamline Health Solutions (NASDAQ: STRM) and Chemed (NYSE:CHE) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Volatility & Risk
Streamline Health Solutions has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, Chemed has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.
Chemed pays an annual dividend of $1.12 per share and has a dividend yield of 0.5%. Streamline Health Solutions does not pay a dividend. Chemed pays out 24.9% of its earnings in the form of a dividend. Streamline Health Solutions has raised its dividend for 8 consecutive years.
Earnings & Valuation
This table compares Streamline Health Solutions and Chemed’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Streamline Health Solutions||$27.06 million||1.12||-$5.16 million||($0.21)||-7.24|
|Chemed||$1.58 billion||2.38||$108.74 million||$4.49||52.30|
Chemed has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Chemed, indicating that it is currently the more affordable of the two stocks.
This table compares Streamline Health Solutions and Chemed’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Streamline Health Solutions||-16.88%||-40.14%||-10.64%|
This is a breakdown of current ratings for Streamline Health Solutions and Chemed, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Streamline Health Solutions||0||0||0||0||N/A|
Chemed has a consensus target price of $228.50, indicating a potential downside of 2.70%. Given Chemed’s higher probable upside, analysts clearly believe Chemed is more favorable than Streamline Health Solutions.
Insider and Institutional Ownership
35.9% of Streamline Health Solutions shares are owned by institutional investors. Comparatively, 97.8% of Chemed shares are owned by institutional investors. 26.1% of Streamline Health Solutions shares are owned by company insiders. Comparatively, 4.9% of Chemed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Chemed beats Streamline Health Solutions on 12 of the 15 factors compared between the two stocks.
About Streamline Health Solutions
Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.
Chemed Corporation purchases, operates and divests subsidiaries engaged in various business activities. The Company operates through two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. VITAS is the provider of hospice services in an industry dominated primarily by small, non-profit, community-based hospices. VITAS provides hospice care to Medicare beneficiaries participating in these managed care programs. A portion of its VITAS business is operated in the state of Florida. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers.
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