Financial Review: Fresenius SE & Co. (OTCMKTS:FSNUY) vs. DaVita (NYSE:DVA)

Fresenius SE & Co. (OTCMKTS:FSNUY) and DaVita (NYSE:DVA) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Fresenius SE & Co. and DaVita, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresenius SE & Co.	0	0	2	0	3.00
DaVita	2	5	0	0	1.71

DaVita has a consensus target price of $148.00, suggesting a potential upside of 28.36%. Given DaVita’s higher probable upside, analysts clearly believe DaVita is more favorable than Fresenius SE & Co..

Earnings & Valuation

This table compares Fresenius SE & Co. and DaVita”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresenius SE & Co.	$23.63 billion	N/A	$509.67 million	$0.55	24.39
DaVita	$13.32 billion	0.61	$936.34 million	$9.71	11.87

DaVita has lower revenue, but higher earnings than Fresenius SE & Co.. DaVita is trading at a lower price-to-earnings ratio than Fresenius SE & Co., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fresenius SE & Co. and DaVita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresenius SE & Co.	5.26%	9.83%	4.55%
DaVita	5.80%	815.62%	4.42%

Risk and Volatility

Fresenius SE & Co. has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, DaVita has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

90.1% of DaVita shares are owned by institutional investors. 1.5% of DaVita shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

DaVita beats Fresenius SE & Co. on 8 of the 13 factors compared between the two stocks.

About Fresenius SE & Co.

Fresenius SE & Co. KGaA, a health care company, provides products and services for chronically ill patients. It operates through four segments: Fresenius Medical Care, Fresenius Kabi, Fresenius Helios, and Fresenius Vamed. The Fresenius Medical Care segment offers products and services for patients with chronic kidney failure. This segment provides dialyzers, dialysis machines, and related disposable products, as well as dialysis-related services. The Fresenius Kabi segment engages in the therapy and care of critically and chronically ill patients. This segment offers I.V. generic drugs; biosimilar drugs for autoimmune diseases and oncology; enteral and parenteral nutrition products; medical technologies, as well as disposables, infusions pumps, apheresis machines, cell therapy devices, and other products. The Fresenius Helios segment provides clinical and nursing care facilities. The Fresenius Vamed segment provides services for hospitals and other healthcare facilities. This segment also offers operational management of healthcare facilities and provides services to patients. The company was formerly known as Fresenius SE and changed its name to Fresenius SE & Co. KGaA in January 2011. Fresenius SE & Co. KGaA was founded in 1912 and is headquartered in Bad Homburg vor der Höhe, Germany.

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.