Davita (NYSE:DVA) and HemaCare (OTCMKTS:HEMA) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Davita and HemaCare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Davita 5.39% 13.87% 3.29%
HemaCare N/A N/A N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Davita and HemaCare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Davita 0 5 5 0 2.50
HemaCare 0 0 1 0 3.00

Davita currently has a consensus price target of $73.31, indicating a potential upside of 32.90%. Given Davita’s higher possible upside, research analysts plainly believe Davita is more favorable than HemaCare.

Volatility & Risk

Davita has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, HemaCare has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Earnings & Valuation

This table compares Davita and HemaCare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Davita $10.88 billion 0.84 $663.61 million $3.32 16.61
HemaCare N/A N/A N/A N/A N/A

Davita has higher revenue and earnings than HemaCare.

Institutional and Insider Ownership

85.7% of Davita shares are held by institutional investors. 1.0% of Davita shares are held by insiders. Comparatively, 26.2% of HemaCare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Davita beats HemaCare on 8 of the 10 factors compared between the two stocks.

About Davita

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease (ESRD). The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also provides outpatient, hospital inpatient, and home-based hemodialysis services; owns 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 operates DaVita Rx, a pharmacy that provides oral medications and medication management services to patients with ESRD; disease management services; vascular access services; clinical research programs; physician services; and direct primary care services. As of December 31, 2017, it provided dialysis and administrative services in the United States through a network of 2,510 outpatient dialysis centers serving approximately 197,800 patients; and operated 237 outpatient dialysis centers located in 11 countries outside of the United States. Further, the company provides acute inpatient dialysis services in approximately 900 hospitals and related laboratory services in the United States. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was founded in 1994 and is headquartered in Denver, Colorado.

About HemaCare

HemaCare Corporation provides human-derived primary blood cells and tissues for biomedical research, and supporting cell therapy clinical trials and commercialization with apheresis collections in the United States. The company specializes in the customized collection, isolation, and testing of primary human blood cells and other biological products for research protocols and cellular therapy. It offers human blood cellular components derived from peripheral blood, bone marrow, and cord blood; and a range of consulting services in standard operating procedure development, personnel training, and quality and regulatory compliance. The company's network of FDA-registered, GMP/GTP-compliant collection centers ensures donor materials available to customers, as well as for use within its isolation laboratory. HemaCare Corporation was founded in 1978 and is headquartered in Northridge, California.

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