TeamHealth Holdings (NYSE: TMH) and Fresenius Medical Care Corporation (NYSE:FMS) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TeamHealth Holdings and Fresenius Medical Care Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TeamHealth Holdings 0 8 0 0 2.00
Fresenius Medical Care Corporation 0 3 6 0 2.67

TeamHealth Holdings currently has a consensus price target of $43.40, suggesting a potential downside of 0.23%. Fresenius Medical Care Corporation has a consensus price target of $46.00, suggesting a potential downside of 4.15%. Given TeamHealth Holdings’ higher possible upside, research analysts plainly believe TeamHealth Holdings is more favorable than Fresenius Medical Care Corporation.

Valuation and Earnings

This table compares TeamHealth Holdings and Fresenius Medical Care Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TeamHealth Holdings N/A N/A N/A $0.61 71.31
Fresenius Medical Care Corporation $20.61 billion 1.43 $3.76 billion $2.18 22.01

Fresenius Medical Care Corporation has higher revenue and earnings than TeamHealth Holdings. Fresenius Medical Care Corporation is trading at a lower price-to-earnings ratio than TeamHealth Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TeamHealth Holdings and Fresenius Medical Care Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TeamHealth Holdings 0.92% 5.98% 0.99%
Fresenius Medical Care Corporation 7.06% 11.57% 4.97%

Institutional and Insider Ownership

2.6% of Fresenius Medical Care Corporation shares are owned by institutional investors. 1.3% of TeamHealth Holdings 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.

Dividends

Fresenius Medical Care Corporation pays an annual dividend of $0.37 per share and has a dividend yield of 0.8%. TeamHealth Holdings does not pay a dividend. Fresenius Medical Care Corporation pays out 17.0% of its earnings in the form of a dividend.

Risk & Volatility

TeamHealth Holdings has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Fresenius Medical Care Corporation has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Summary

Fresenius Medical Care Corporation beats TeamHealth Holdings on 9 of the 13 factors compared between the two stocks.

TeamHealth Holdings Company Profile

Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.

Fresenius Medical Care Corporation Company Profile

Fresenius Medical Care AG & Co. KGaA is a kidney dialysis company. The Company provides dialysis care and related services to persons suffering from end-stage renal disease (ESRD), as well as other healthcare services. The Company’s segments include North America Segment, the Europe, Middle East and Africa (EMEA) Segment, the Asia-Pacific Segment and the Latin America Segment. The Company develops and manufactures a range of dialysis machines, systems and disposable products. As of December 31, 2016, the Company sold its products to customers in more than 120 countries and also used in its internal healthcare service operations. The Company’s Care Coordination services include coordinated delivery of pharmacy services, vascular, cardiovascular and endovascular specialty services, non-dialysis laboratory testing services, physician services, hospitalist and intensivist services, health plan services, ambulatory surgery center services and urgent care services.

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