Comparing Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) & Getinge (OTCMKTS:GNGBY)

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and Getinge (OTCMKTS:GNGBY) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Fresenius Medical Care AG & Co. KGaA pays an annual dividend of $0.61 per share and has a dividend yield of 2.9%. Getinge pays an annual dividend of $0.29 per share and has a dividend yield of 1.1%. Fresenius Medical Care AG & Co. KGaA pays out 31.6% of its earnings in the form of a dividend. Getinge pays out 27.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Fresenius Medical Care AG & Co. KGaA and Getinge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresenius Medical Care AG & Co. KGaA	5	8	0	0	1.62
Getinge	0	4	0	0	2.00

Fresenius Medical Care AG & Co. KGaA presently has a consensus target price of $23.42, suggesting a potential upside of 11.15%. Given Fresenius Medical Care AG & Co. KGaA’s higher probable upside, equities analysts plainly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Getinge.

Valuation and Earnings

This table compares Fresenius Medical Care AG & Co. KGaA and Getinge”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.51	$1.11 billion	$1.93	10.92
Getinge	$3.57 billion	1.94	$230.87 million	$1.05	24.22

Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than Getinge. Fresenius Medical Care AG & Co. KGaA is trading at a lower price-to-earnings ratio than Getinge, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fresenius Medical Care AG & Co. KGaA and Getinge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresenius Medical Care AG & Co. KGaA	4.83%	9.28%	4.16%
Getinge	7.81%	11.12%	5.88%

Risk & Volatility

Fresenius Medical Care AG & Co. KGaA has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Getinge has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Summary

Getinge beats Fresenius Medical Care AG & Co. KGaA on 8 of the 14 factors compared between the two stocks.

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.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.