HCA Holdings (NYSE: HCA) and Fresenius Medical Care Corporation (NYSE:FMS) are both large-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
This table compares HCA Holdings and Fresenius Medical Care Corporation’s 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%|
Risk & Volatility
HCA Holdings has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Fresenius Medical Care Corporation has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.
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.
This is a breakdown of current recommendations and price targets for HCA Holdings and Fresenius Medical Care Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fresenius Medical Care Corporation||0||2||4||0||2.67|
HCA Holdings presently has a consensus target price of $89.60, indicating a potential upside of 18.08%. Fresenius Medical Care Corporation has a consensus target price of $44.00, indicating a potential downside of 9.52%. Given HCA Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe HCA Holdings is more favorable than Fresenius Medical Care Corporation.
Institutional & Insider Ownership
75.9% of HCA Holdings shares are held by institutional investors. Comparatively, 2.6% of Fresenius Medical Care Corporation shares are held by institutional investors. 2.9% of HCA Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares HCA Holdings and Fresenius Medical Care Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|HCA Holdings||$41.49 billion||0.65||$2.89 billion||$7.03||10.79|
|Fresenius Medical Care Corporation||$17.91 billion||1.67||$1.24 billion||$2.23||21.81|
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.
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.
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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