DaVita vs FMC Which Offers More Value?

DaVita and Fresenius Medical Care (FMC) are two leading kidney dialysis providers in the healthcare industry. Both companies operate a network of dialysis clinics worldwide, serving patients with end-stage renal disease. Investors often compare DaVita and FMC stocks due to their dominant market positions and strong financial performance. While DaVita has shown steady growth and a strong presence in the US market, FMC has a larger global footprint and diversified healthcare services. Understanding the differences and similarities between these two stocks can help investors make informed decisions in their investment strategies.

DaVita or FMC?

When comparing DaVita and FMC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between DaVita and FMC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. DaVita has a dividend yield of -%, while FMC has a dividend yield of 4.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DaVita reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, FMC reports a 5-year dividend growth of 20.99% year and a payout ratio of 19.96%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with DaVita P/E ratio at 15.73 and FMC's P/E ratio at 4.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DaVita P/B ratio is 33.66 while FMC's P/B ratio is 1.53.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DaVita has seen a 5-year revenue growth of 1.00%, while FMC's is 0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DaVita's ROE at 110.29% and FMC's ROE at 32.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $154.31 for DaVita and $56.25 for FMC. Over the past year, DaVita's prices ranged from $103.40 to $169.52, with a yearly change of 63.95%. FMC's prices fluctuated between $50.03 and $68.72, with a yearly change of 37.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.