Financial Comparison: Auna (NYSE:AUNA) and Addus HomeCare (NASDAQ:ADUS)

Auna (NYSE:AUNA) and Addus HomeCare (NASDAQ:ADUS) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Auna	0.44%	12.88%	3.24%
Addus HomeCare	7.13%	9.96%	7.62%

Risk & Volatility

Auna has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Addus HomeCare has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Valuation and Earnings

This table compares Auna and Addus HomeCare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auna	$1.23 billion	0.32	$27.39 million	$0.07	76.07
Addus HomeCare	$1.42 billion	1.50	$95.91 million	$5.70	20.07

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Auna and Addus HomeCare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auna	1	2	1	1	2.40
Addus HomeCare	1	4	5	1	2.55

Auna presently has a consensus price target of $6.97, indicating a potential upside of 30.83%. Addus HomeCare has a consensus price target of $129.33, indicating a potential upside of 13.06%. Given Auna’s higher possible upside, equities research analysts plainly believe Auna is more favorable than Addus HomeCare.

Summary

Addus HomeCare beats Auna on 11 of the 14 factors compared between the two stocks.

About Auna

Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.

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.