Comparing DaVita (NYSE:DVA) and Agilon Health (NYSE:AGL)

DaVita (NYSE:DVA) and Agilon Health (NYSE:AGL) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Volatility and Risk

DaVita has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Agilon Health has a beta of 2.98, suggesting that its share price is 198% more volatile than the S&P 500.

Valuation & Earnings

This table compares DaVita and Agilon Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DaVita	$13.64 billion	0.90	$746.80 million	$12.22	15.79
Agilon Health	$5.93 billion	0.24	-$391.35 million	($14.27)	-5.99

DaVita has higher revenue and earnings than Agilon Health. Agilon Health is trading at a lower price-to-earnings ratio than DaVita, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DaVita and Agilon Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DaVita	6.05%	-217.63%	5.07%
Agilon Health	-3.92%	-119.38%	-16.85%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DaVita and Agilon Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DaVita	0	3	4	0	2.57
Agilon Health	2	6	6	0	2.29

DaVita presently has a consensus target price of $233.43, indicating a potential upside of 20.99%. Agilon Health has a consensus target price of $102.25, indicating a potential upside of 19.61%. Given DaVita’s stronger consensus rating and higher possible upside, research analysts clearly believe DaVita is more favorable than Agilon Health.

Institutional and Insider Ownership

90.1% of DaVita shares are owned by institutional investors. 1.9% of DaVita shares are owned by company insiders. Comparatively, 2.5% of Agilon Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

DaVita beats Agilon Health on 10 of the 14 factors compared between the two stocks.

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.

About Agilon Health

agilon health, inc. provides healthcare services for seniors through primary care physicians in the communities of the United States. It offers a platform that manages the total healthcare needs of the patients by subscription-like per-member per-month. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.