HealthEquity (NASDAQ:HQY – Get Free Report) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Analyst Ratings
This is a breakdown of recent ratings and target prices for HealthEquity and Fresenius Medical Care AG & Co. KGaA, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HealthEquity | 1 | 1 | 10 | 1 | 2.85 |
| Fresenius Medical Care AG & Co. KGaA | 3 | 8 | 0 | 0 | 1.73 |
HealthEquity presently has a consensus target price of $112.20, suggesting a potential upside of 21.28%. Fresenius Medical Care AG & Co. KGaA has a consensus target price of $23.42, suggesting a potential upside of 5.97%. Given HealthEquity’s stronger consensus rating and higher probable upside, research analysts plainly believe HealthEquity is more favorable than Fresenius Medical Care AG & Co. KGaA.
Risk and Volatility
HealthEquity has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. KGaA has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
Profitability
This table compares HealthEquity and Fresenius Medical Care AG & Co. KGaA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HealthEquity | 17.36% | 15.33% | 9.51% |
| Fresenius Medical Care AG & Co. KGaA | 4.83% | 9.28% | 4.16% |
Earnings & Valuation
This table compares HealthEquity and Fresenius Medical Care AG & Co. KGaA”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HealthEquity | $1.31 billion | 5.83 | $215.20 million | $2.77 | 33.40 |
| Fresenius Medical Care AG & Co. KGaA | $22.20 billion | 0.53 | $1.11 billion | $1.93 | 11.45 |
Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than HealthEquity. Fresenius Medical Care AG & Co. KGaA is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
99.5% of HealthEquity shares are owned by institutional investors. Comparatively, 8.4% of Fresenius Medical Care AG & Co. KGaA shares are owned by institutional investors. 1.6% of HealthEquity shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
HealthEquity beats Fresenius Medical Care AG & Co. KGaA on 12 of the 15 factors compared between the two stocks.
About HealthEquity
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.
About Fresenius Medical Care AG & Co. KGaA
Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.
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