Davita (NYSE: DVA) and Concord Medical Services (NYSE:CCM) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
85.8% of Davita shares are held by institutional investors. Comparatively, 1.8% of Concord Medical Services shares are held by institutional investors. 2.0% of Davita shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Davita and Concord Medical Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Concord Medical Services||N/A||N/A||N/A|
Valuation and Earnings
This table compares Davita and Concord Medical Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Davita||$10.88 billion||1.17||$663.61 million||$4.75||14.74|
|Concord Medical Services||$65.54 million||1.95||-$37.71 million||N/A||N/A|
Davita has higher revenue and earnings than Concord Medical Services.
Risk & Volatility
Davita has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Concord Medical Services has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Davita and Concord Medical Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Concord Medical Services||0||0||0||0||N/A|
Davita presently has a consensus target price of $79.00, suggesting a potential upside of 12.81%. Given Davita’s higher probable upside, analysts clearly believe Davita is more favorable than Concord Medical Services.
Davita beats Concord Medical Services on 11 of the 12 factors compared between the two stocks.
Davita Company Profile
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
Concord Medical Services Company Profile
Concord Medical Services Holdings Limited is engaged in the leasing of radiotherapy and diagnostic imaging equipment, the provision of management services to hospitals. The Company is also engaged in hospital operations. The Company’s segments are network and premium cancer hospital. The Company operates a network of radiotherapy and diagnostic imaging centers in China. Its network consists of approximately 130 cooperative centers based in over 70 hospitals, spanning approximately 60 cities across 25 provinces and administrative regions in China. Its network includes approximately 60 radiotherapy centers and over 60 diagnostic imaging centers and approximately seven centers. The Company’s cooperative centers are equipped with a primary unit of medical equipment, such as a linear accelerator, head gamma knife system, body gamma knife system, positron emission tomography-computed tomography (PET-CT) scanner or magnetic resonance imaging (MRI) scanner.
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