Head-To-Head Survey: Fresenius Medical Care Corporation (FMS) versus HCA Holdings (HCA)
Fresenius Medical Care Corporation (NYSE: FMS) and HCA Holdings (NYSE:HCA) are both large-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This is a summary of recent ratings and recommmendations for Fresenius Medical Care Corporation and HCA Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fresenius Medical Care Corporation||0||2||4||0||2.67|
Fresenius Medical Care Corporation currently has a consensus target price of $44.00, suggesting a potential downside of 9.61%. HCA Holdings has a consensus target price of $89.60, suggesting a potential upside of 13.62%. Given HCA Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe HCA Holdings is more favorable than Fresenius Medical Care Corporation.
This table compares Fresenius Medical Care Corporation and HCA Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fresenius Medical Care Corporation||7.04%||11.51%||5.00%|
Institutional and Insider Ownership
2.6% of Fresenius Medical Care Corporation shares are held by institutional investors. Comparatively, 75.2% of HCA Holdings shares are held by institutional investors. 2.9% of HCA Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Fresenius Medical Care Corporation pays an annual dividend of $0.37 per share and has a dividend yield of 0.8%. HCA Holdings does not pay a dividend. Fresenius Medical Care Corporation pays out 16.6% of its earnings in the form of a dividend.
Risk & Volatility
Fresenius Medical Care Corporation has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, HCA Holdings has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
Valuation and Earnings
This table compares Fresenius Medical Care Corporation and HCA Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Fresenius Medical Care Corporation||$17.91 billion||1.67||$1.24 billion||$2.23||21.83|
|HCA Holdings||$41.49 billion||0.69||$2.89 billion||$7.03||11.22|
HCA Holdings has higher revenue and earnings than Fresenius Medical Care Corporation. HCA Holdings is trading at a lower price-to-earnings ratio than Fresenius Medical Care Corporation, indicating that it is currently the more affordable of the two stocks.
HCA Holdings beats Fresenius Medical Care Corporation on 11 of the 16 factors compared between the two stocks.
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.
HCA Holdings Company Profile
HCA Healthcare, Inc., formerly HCA Holdings, Inc., is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. As of December 31, 2016, the Company operated in two geographically organized groups, including the National and American Groups. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. As of December 31, 2016, the American Group included 80 hospitals, which were located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. As of December 31, 2016, the Company operated six hospitals in England. The Company owns, manages or operates hospitals, freestanding surgery centers and freestanding emergency care facilities, walk-in clinics, diagnostic and imaging centers, among others.
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