Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) & Positron (OTCMKTS:POSC) Critical Review

Positron (OTCMKTS:POSC) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Profitability

This table compares Positron and Fresenius Medical Care AG & Co. KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Positron	-592.35%	-419.44%	-79.38%
Fresenius Medical Care AG & Co. KGaA	3.39%	6.75%	3.13%

Earnings & Valuation

This table compares Positron and Fresenius Medical Care AG & Co. KGaA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Positron	$590,000.00	87.84	-$2.39 million	($0.12)	-13.75
Fresenius Medical Care AG & Co. KGaA	$20.63 billion	N/A	$582.08 million	$1.22	19.95

Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than Positron. Positron is trading at a lower price-to-earnings ratio than Fresenius Medical Care AG & Co. KGaA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Positron and Fresenius Medical Care AG & Co. KGaA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Positron	0	0	0	0	0.00
Fresenius Medical Care AG & Co. KGaA	2	3	1	0	1.83

Fresenius Medical Care AG & Co. KGaA has a consensus price target of $27.80, suggesting a potential upside of 14.21%. Given Fresenius Medical Care AG & Co. KGaA’s stronger consensus rating and higher possible upside, analysts plainly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Positron.

Volatility & Risk

Positron has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. KGaA has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Institutional and Insider Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are held by institutional investors. 17.2% of Positron shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Fresenius Medical Care AG & Co. KGaA beats Positron on 12 of the 13 factors compared between the two stocks.

About Positron

Positron Corporation, a nuclear medicine healthcare company, specializes in the business of cardiac positron emission tomography (PET) imaging in the United States. It offers attrius PET scanner, clinical and technical services, and financing solutions enables healthcare providers to accurately diagnose cardiac disease, improve patient outcomes, and practice cost effective medicines. Positron Corporation was incorporated in 1983 and is based in Niagara Falls, New York.

About Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.