Amedisys (NASDAQ:AMED – Get Free Report) and DaVita (NYSE:DVA – Get Free Report) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Valuation and Earnings
This table compares Amedisys and DaVita”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Amedisys | $2.40 billion | 1.38 | $43.23 million | $2.57 | 39.30 |
DaVita | $13.16 billion | 0.74 | $936.34 million | $10.17 | 13.42 |
Profitability
This table compares Amedisys and DaVita’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Amedisys | 3.56% | 12.91% | 7.29% |
DaVita | 6.35% | 369.39% | 4.62% |
Volatility & Risk
Amedisys has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, DaVita has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Amedisys and DaVita, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Amedisys | 0 | 1 | 1 | 0 | 2.50 |
DaVita | 0 | 3 | 0 | 0 | 2.00 |
Amedisys presently has a consensus target price of $100.50, suggesting a potential downside of 0.50%. DaVita has a consensus target price of $164.00, suggesting a potential upside of 20.12%. Given DaVita’s higher probable upside, analysts clearly believe DaVita is more favorable than Amedisys.
Institutional and Insider Ownership
94.4% of Amedisys shares are owned by institutional investors. Comparatively, 90.1% of DaVita shares are owned by institutional investors. 2.1% of Amedisys shares are owned by insiders. Comparatively, 1.5% of DaVita shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
About Amedisys
Amedisys, Inc., together with its subsidiaries, provides healthcare services in the United States. It operates through three segments: Home Health, Hospice, and High Acuity Care. The Home Health segment offers a range of services in the homes of individuals for the recovery of patients from surgery, chronic disability, or terminal illness, as well as prevents avoidable hospital readmissions through its skilled nurses; nursing services, rehabilitation therapists specialized in physical, speech, and occupational therapy; and social workers and aides for assisting its patients. The Hospice segment offers services that is designed to provide comfort and support for those who are dealing with a terminal illness, including cancer, heart disease, pulmonary disease, or Alzheimer’s. The High Acuity Care offers essential elements of inpatient hospital, skilled nursing facility care, and palliative care to patients in their homes. Amedisys, Inc. was incorporated in 1982 and is headquartered in Baton Rouge, Louisiana.
About DaVita
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.
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