Comparing U.S. Physical Therapy (NYSE:USPH) and Addus HomeCare (NASDAQ:ADUS)

U.S. Physical Therapy (NYSE:USPH) and Addus HomeCare (NASDAQ:ADUS) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Volatility and Risk

U.S. Physical Therapy has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Addus HomeCare has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

95.4% of Addus HomeCare shares are held by institutional investors. 2.0% of U.S. Physical Therapy shares are held by insiders. Comparatively, 4.5% of Addus HomeCare shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares U.S. Physical Therapy and Addus HomeCare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Physical Therapy	$671.34 million	1.94	$31.42 million	$2.29	37.42
Addus HomeCare	$1.15 billion	1.79	$73.60 million	$4.53	24.69

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

Profitability

This table compares U.S. Physical Therapy and Addus HomeCare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Physical Therapy	5.05%	8.78%	3.81%
Addus HomeCare	6.51%	9.39%	6.86%

Analyst Ratings

This is a breakdown of current ratings and target prices for U.S. Physical Therapy and Addus HomeCare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Physical Therapy	0	2	4	1	2.86
Addus HomeCare	1	0	7	2	3.00

U.S. Physical Therapy currently has a consensus price target of $110.25, suggesting a potential upside of 28.67%. Addus HomeCare has a consensus price target of $138.89, suggesting a potential upside of 24.17%. Given U.S. Physical Therapy’s higher probable upside, research analysts plainly believe U.S. Physical Therapy is more favorable than Addus HomeCare.

Summary

Addus HomeCare beats U.S. Physical Therapy on 11 of the 15 factors compared between the two stocks.

About U.S. Physical Therapy

U.S. Physical Therapy, Inc. operates outpatient physical therapy clinics. The company operates through Physical Therapy Operations and Industrial Injury Prevention Services segments. The company provides pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. It offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments through physical therapists and specialized certified athletic trainers for Fortune 500 companies, and other clients comprising insurers and their contractors. U.S. Physical Therapy, Inc. was founded in 1990 and is based in Houston, Texas.

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.