Addus HomeCare (NASDAQ:ADUS) versus HealthEquity (NASDAQ:HQY) Head to Head Comparison

HealthEquity (NASDAQ:HQY) and Addus HomeCare (NASDAQ:ADUS) are both mid-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for HealthEquity and Addus HomeCare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthEquity	1	1	10	1	2.85
Addus HomeCare	1	4	5	1	2.55

HealthEquity presently has a consensus price target of $112.20, suggesting a potential upside of 20.58%. Addus HomeCare has a consensus price target of $129.33, suggesting a potential upside of 13.19%. Given HealthEquity’s stronger consensus rating and higher probable upside, equities analysts plainly believe HealthEquity is more favorable than Addus HomeCare.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HealthEquity	17.36%	15.33%	9.51%
Addus HomeCare	7.13%	9.96%	7.62%

Earnings and Valuation

This table compares HealthEquity and Addus HomeCare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthEquity	$1.36 billion	5.65	$215.20 million	$2.77	33.59
Addus HomeCare	$1.48 billion	1.45	$95.91 million	$5.70	20.05

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

Institutional & Insider Ownership

99.6% of HealthEquity shares are held by institutional investors. Comparatively, 95.3% of Addus HomeCare shares are held by institutional investors. 1.6% of HealthEquity shares are held by company insiders. Comparatively, 4.1% of Addus HomeCare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

HealthEquity has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Addus HomeCare has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Summary

HealthEquity beats Addus HomeCare on 10 of the 14 factors compared between the two stocks.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.

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.