Critical Comparison: Fresenius Medical Care Corporation (FMS) & Air Methods Corp (AIRM)
Fresenius Medical Care Corporation (NYSE: FMS) and Air Methods Corp (NASDAQ:AIRM) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Insider and Institutional Ownership
2.6% of Fresenius Medical Care Corporation shares are owned by institutional investors. 9.0% of Air Methods Corp 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.
This table compares Fresenius Medical Care Corporation and Air Methods Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fresenius Medical Care Corporation||7.04%||11.51%||5.00%|
|Air Methods Corp||6.67%||14.18%||4.43%|
This is a summary of current ratings for Fresenius Medical Care Corporation and Air Methods Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fresenius Medical Care Corporation||0||2||4||0||2.67|
|Air Methods Corp||0||3||1||0||2.25|
Fresenius Medical Care Corporation presently has a consensus target price of $44.00, suggesting a potential downside of 9.13%. Air Methods Corp has a consensus target price of $43.00, suggesting a potential upside of 0.12%. Given Air Methods Corp’s higher possible upside, analysts clearly believe Air Methods Corp is more favorable than Fresenius Medical Care Corporation.
Fresenius Medical Care Corporation pays an annual dividend of $0.37 per share and has a dividend yield of 0.8%. Air Methods Corp does not pay a dividend. Fresenius Medical Care Corporation pays out 16.6% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Fresenius Medical Care Corporation and Air Methods Corp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Fresenius Medical Care Corporation||$17.91 billion||1.66||$1.24 billion||$2.23||21.71|
|Air Methods Corp||N/A||N/A||N/A||$2.59||16.58|
Fresenius Medical Care Corporation has higher revenue and earnings than Air Methods Corp. Air Methods Corp is trading at a lower price-to-earnings ratio than Fresenius Medical Care Corporation, indicating that it is currently the more affordable of the two stocks.
Fresenius Medical Care Corporation beats Air Methods Corp on 7 of the 12 factors compared between the two stocks.
About Fresenius Medical Care Corporation
Fresenius Medical Care AG & Co. KGaA is a kidney dialysis company. The Company provides dialysis care and related services to persons suffering from end-stage renal disease (ESRD), as well as other healthcare services. The Company’s segments include North America Segment, the Europe, Middle East and Africa (EMEA) Segment, the Asia-Pacific Segment and the Latin America Segment. The Company develops and manufactures a range of dialysis machines, systems and disposable products. As of December 31, 2016, the Company sold its products to customers in more than 120 countries and also used in its internal healthcare service operations. The Company’s Care Coordination services include coordinated delivery of pharmacy services, vascular, cardiovascular and endovascular specialty services, non-dialysis laboratory testing services, physician services, hospitalist and intensivist services, health plan services, ambulatory surgery center services and urgent care services.
About Air Methods Corp
Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.
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