Analyzing Elanco Animal Health (NYSE:ELAN) and Addus HomeCare (NASDAQ:ADUS)

Addus HomeCare (NASDAQ:ADUS) and Elanco Animal Health (NYSE:ELAN) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Addus HomeCare and Elanco Animal Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Addus HomeCare	1	2	8	0	2.64
Elanco Animal Health	1	3	7	2	2.77

Addus HomeCare presently has a consensus price target of $137.11, suggesting a potential upside of 21.36%. Elanco Animal Health has a consensus price target of $22.78, suggesting a potential upside of 3.39%. Given Addus HomeCare’s higher possible upside, equities analysts plainly believe Addus HomeCare is more favorable than Elanco Animal Health.

Volatility & Risk

Addus HomeCare has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Valuation & Earnings

This table compares Addus HomeCare and Elanco Animal Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Addus HomeCare	$1.15 billion	1.81	$73.60 million	$4.67	24.19
Elanco Animal Health	$4.44 billion	2.47	$338.00 million	$0.06	367.17

Elanco Animal Health has higher revenue and earnings than Addus HomeCare. Addus HomeCare is trading at a lower price-to-earnings ratio than Elanco Animal Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Addus HomeCare and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Addus HomeCare	6.36%	9.53%	6.81%
Elanco Animal Health	0.78%	7.41%	3.64%

Institutional and Insider Ownership

95.4% of Addus HomeCare shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 4.5% of Addus HomeCare shares are owned by insiders. Comparatively, 0.9% of Elanco Animal Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Elanco Animal Health beats Addus HomeCare on 8 of the 15 factors compared between the two stocks.

About Addus HomeCare

Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. Addus HomeCare Corporation was founded in 1979 and is headquartered in Frisco, Texas.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.