OPKO Health (NASDAQ:OPK – Get Free Report) and DaVita (NYSE:DVA – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Volatility and Risk
OPKO Health has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, DaVita has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Profitability
This table compares OPKO Health and DaVita’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OPKO Health | -12.40% | -5.88% | -3.83% |
| DaVita | 6.05% | -217.63% | 5.07% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OPKO Health | 1 | 3 | 1 | 0 | 2.00 |
| DaVita | 1 | 3 | 4 | 0 | 2.38 |
OPKO Health presently has a consensus price target of $1.55, suggesting a potential downside of 3.13%. DaVita has a consensus price target of $221.75, suggesting a potential upside of 21.74%. Given DaVita’s stronger consensus rating and higher possible upside, analysts plainly believe DaVita is more favorable than OPKO Health.
Institutional and Insider Ownership
64.6% of OPKO Health shares are held by institutional investors. Comparatively, 90.1% of DaVita shares are held by institutional investors. 44.7% of OPKO Health shares are held by insiders. Comparatively, 1.9% of DaVita shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares OPKO Health and DaVita”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OPKO Health | $606.90 million | 1.97 | -$225.68 million | ($0.09) | -17.78 |
| DaVita | $13.64 billion | 0.85 | $746.80 million | $12.22 | 14.91 |
DaVita has higher revenue and earnings than OPKO Health. OPKO Health is trading at a lower price-to-earnings ratio than DaVita, indicating that it is currently the more affordable of the two stocks.
Summary
DaVita beats OPKO Health on 10 of the 14 factors compared between the two stocks.
About OPKO Health
OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.
About DaVita
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.
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