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

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.

Insider & Institutional Ownership

2.6% of Fresenius Medical Care Corporation shares are held by institutional investors. 1.3% of TeamHealth Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fresenius Medical Care Corporation $20.61 billion 1.43 $3.76 billion $2.18 22.06
TeamHealth Holdings N/A N/A N/A $0.61 71.31

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.

Volatility & Risk

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fresenius Medical Care Corporation and TeamHealth Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fresenius Medical Care Corporation 0 3 5 0 2.63
TeamHealth Holdings 0 8 0 0 2.00

Fresenius Medical Care Corporation presently has a consensus price target of $44.00, suggesting a potential downside of 8.52%. TeamHealth Holdings has a consensus price target of $43.40, suggesting a potential downside of 0.23%. Given TeamHealth Holdings’ higher probable upside, analysts plainly believe TeamHealth Holdings is more favorable than Fresenius Medical Care Corporation.

Summary

Fresenius Medical Care Corporation beats TeamHealth Holdings on 9 of the 13 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.

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.

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