DaVita vs Fresenius Medical Care Which Is Stronger?

DaVita and Fresenius Medical Care are two of the largest players in the dialysis industry, providing crucial treatments for patients with kidney disease. Both companies have seen their stocks fluctuate in recent years due to various factors, such as changes in healthcare regulations and reimbursement rates. Investors interested in the healthcare sector may find these two stocks appealing due to their stable revenue streams and consistent demand for their services. However, each company has its own unique strengths and weaknesses that should be carefully considered before making any investment decisions.

DaVita or Fresenius Medical Care?

When comparing DaVita and Fresenius Medical Care, 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 Fresenius Medical Care.

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 Fresenius Medical Care has a dividend yield of 2.82%. 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, Fresenius Medical Care reports a 5-year dividend growth of -0.44% year and a payout ratio of 52.99%.

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 15.45 and Fresenius Medical Care's P/E ratio at 10.03. 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 33.06 while Fresenius Medical Care's P/B ratio is 0.48.

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 Fresenius Medical Care's is 1.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DaVita's ROE at 110.29% and Fresenius Medical Care's ROE at 4.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $151.62 for DaVita and $23.58 for Fresenius Medical Care. Over the past year, DaVita's prices ranged from $103.40 to $169.52, with a yearly change of 63.95%. Fresenius Medical Care's prices fluctuated between $17.93 and $24.31, with a yearly change of 35.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.