Reviewing Tactile Systems Technology (NASDAQ:TCMD) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS)

Fresenius Medical Care AG & Co. KGaA (NYSE:FMSGet Free Report) and Tactile Systems Technology (NASDAQ:TCMDGet Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Fresenius Medical Care AG & Co. KGaA 3.72% 7.42% 3.43%
Tactile Systems Technology 5.83% 8.84% 6.54%

Analyst Ratings

This is a summary of recent ratings and target prices for Fresenius Medical Care AG & Co. KGaA and Tactile Systems Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fresenius Medical Care AG & Co. KGaA 3 4 0 0 1.57
Tactile Systems Technology 0 3 2 1 2.67

Fresenius Medical Care AG & Co. KGaA presently has a consensus price target of $28.00, indicating a potential upside of 32.67%. Tactile Systems Technology has a consensus price target of $28.75, indicating a potential downside of 4.23%. Given Fresenius Medical Care AG & Co. KGaA’s higher probable upside, equities research analysts plainly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Tactile Systems Technology.

Valuation and Earnings

This table compares Fresenius Medical Care AG & Co. KGaA and Tactile Systems Technology”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fresenius Medical Care AG & Co. KGaA $20.63 billion N/A $582.08 million $1.37 15.41
Tactile Systems Technology $292.98 million 2.29 $16.96 million $0.77 38.99

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

Insider & Institutional Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are owned by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are owned by institutional investors. 2.5% of Tactile Systems Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

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. Comparatively, Tactile Systems Technology has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Summary

Tactile Systems Technology beats Fresenius Medical Care AG & Co. KGaA on 10 of the 14 factors compared between the two stocks.

About Fresenius Medical Care AG & Co. KGaA

(Get Free Report)

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.

About Tactile Systems Technology

(Get Free Report)

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.

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