Reviewing Fresenius Medical Care Corporation (FMS) and Mednax (MD)
Fresenius Medical Care Corporation (NYSE: FMS) and Mednax (NYSE:MD) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Risk & Volatility
Fresenius Medical Care Corporation has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Mednax has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Institutional and Insider Ownership
2.6% of Fresenius Medical Care Corporation shares are held by institutional investors. 2.4% of Mednax shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Fresenius Medical Care Corporation and Mednax’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fresenius Medical Care Corporation||$20.17 billion||1.42||$3.68 billion||$2.18||21.44|
|Mednax||$3.34 billion||1.21||$628.40 million||$3.16||13.66|
Fresenius Medical Care Corporation has higher revenue and earnings than Mednax. Mednax 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.
This table compares Fresenius Medical Care Corporation and Mednax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fresenius Medical Care Corporation||7.06%||11.57%||4.97%|
Fresenius Medical Care Corporation pays an annual dividend of $0.37 per share and has a dividend yield of 0.8%. Mednax does not pay a dividend. Fresenius Medical Care Corporation pays out 17.0% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Fresenius Medical Care Corporation and Mednax, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fresenius Medical Care Corporation||0||3||7||0||2.70|
Fresenius Medical Care Corporation currently has a consensus target price of $46.00, suggesting a potential downside of 1.58%. Mednax has a consensus target price of $61.00, suggesting a potential upside of 41.30%. Given Mednax’s higher probable upside, analysts plainly believe Mednax is more favorable than Fresenius Medical Care Corporation.
Fresenius Medical Care Corporation beats Mednax on 9 of the 16 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.
MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company’s national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.
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