Analyzing Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and RxSight (NASDAQ:RXST)

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and RxSight (NASDAQ:RXST) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Fresenius Medical Care AG & Co. KGaA and RxSight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresenius Medical Care AG & Co. KGaA	4	5	0	0	1.56
RxSight	3	10	2	0	1.93

Fresenius Medical Care AG & Co. KGaA presently has a consensus target price of $28.00, indicating a potential upside of 25.93%. RxSight has a consensus target price of $9.44, indicating a potential upside of 57.41%. Given RxSight’s stronger consensus rating and higher possible upside, analysts clearly believe RxSight is more favorable than Fresenius Medical Care AG & Co. KGaA.

Risk and Volatility

Fresenius Medical Care AG & Co. KGaA has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, RxSight has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Fresenius Medical Care AG & Co. KGaA and RxSight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresenius Medical Care AG & Co. KGaA	4.88%	8.90%	4.05%
RxSight	-36.58%	-17.01%	-15.12%

Insider and Institutional Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are held by institutional investors. Comparatively, 78.8% of RxSight shares are held by institutional investors. 10.1% of RxSight shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Fresenius Medical Care AG & Co. KGaA and RxSight”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.56	$1.11 billion	$1.90	11.70
RxSight	$127.48 million	1.95	-$38.94 million	($1.13)	-5.31

Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than RxSight. RxSight is trading at a lower price-to-earnings ratio than Fresenius Medical Care AG & Co. KGaA, indicating that it is currently the more affordable of the two stocks.

About Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.