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CHE vs PTCT

CHE
Chemed Corporation
BEARISH
Price
$421.11
Market Cap
$5.65B
Sector
Healthcare
AI Confidence
85%
PTCT
PTC Therapeutics, Inc.
NEUTRAL
Price
$72.43
Market Cap
$6.0B
Sector
Healthcare
AI Confidence
80%

Valuation

P/E Ratio
CHE
22.99
PTCT
8.44
Forward P/E
CHE
15.75
PTCT
29.81
P/B Ratio
CHE
5.9
PTCT
-28.74
P/S Ratio
CHE
2.23
PTCT
3.46
EV/EBITDA
CHE
13.21
PTCT
7.55

Profitability

Gross Margin
CHE
32.54%
PTCT
70.98%
Operating Margin
CHE
16.62%
PTCT
-49.57%
Profit Margin
CHE
10.48%
PTCT
39.44%
ROE
CHE
25.28%
PTCT
--
ROA
CHE
13.4%
PTCT
23.26%

Growth

Revenue Growth
CHE
-0.1%
PTCT
-22.7%
Earnings Growth
CHE
-9.1%
PTCT
--

Financial Health

Debt/Equity
CHE
0.15
PTCT
--
Current Ratio
CHE
1.05
PTCT
2.35
Quick Ratio
CHE
0.9
PTCT
2.2

Dividends

Dividend Yield
CHE
0.6%
PTCT
--
Payout Ratio
CHE
12.0%
PTCT
0.0%

AI Verdict

CHE BEARISH

Chemed Corporation exhibits a stark divergence between its fundamental valuation and current market price, trading at a massive premium to its Graham Number ($171.6) and Intrinsic Value ($128.24). While the company maintains a stable Piotroski F-Score of 4/9 and an exceptionally low Debt/Equity ratio of 0.15, these health metrics are offset by negative YoY revenue and earnings growth. The combination of declining profitability, bearish insider activity from the CEO, and a valuation that is nearly 2.5x its defensive fair value suggests significant downside risk.

Strengths
Very low leverage with a Debt/Equity ratio of 0.15
Strong profitability metrics with ROE at 25.28% and ROA at 13.40%
Healthy operating margins of 16.62%
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Negative growth trajectory (YoY Earnings Growth: -9.10%)
Bearish insider sentiment with multiple CEO sell transactions
PTCT NEUTRAL

PTCT presents a paradoxical profile: it boasts a perfect Piotroski F-Score of 9/9, indicating strong short-term financial improvement, yet suffers from negative revenue growth (-22.70%) and heavy insider selling. While the current P/E of 8.44 appears attractive, the jump to a Forward P/E of 29.81 suggests a significant expected decline in earnings. The stock is currently trading at a premium to its growth-based intrinsic value of $60.06, though analyst targets remain optimistic at $87.87. Overall, the strong balance sheet liquidity (Current Ratio 2.35) offsets the operational volatility, but the lack of growth and insider confidence warrants a neutral stance.

Strengths
Perfect Piotroski F-Score (9/9) indicating strong fundamental health trends
High Gross Margin (70.98%) reflecting strong pricing power or low COGS
Strong liquidity position with a Current Ratio of 2.35
Risks
Significant negative revenue growth (-22.70% YoY and Q/Q)
Heavy insider selling (16 transactions, 0 buys) including CEO and COO
Extreme earnings volatility with massive surprise swings (e.g., -1097.5% recent surprise)

Compare Another Pair

CHE vs PTCT: Head-to-Head Comparison

This page compares Chemed Corporation (CHE) and PTC Therapeutics, Inc. (PTCT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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